The Top Real Estate Metrics to Look at in a Shifting Market
We’re in the midst of a real estate shift. The market is quickly changing, and agents and teams have to adapt in order to keep up. At Smart Inside Sales, we’ve been receiving a lot of questions from our clients about which real estate KPIs they should pay the most attention to now that the market is tightening.
I wanted to put together a quick blog post that covers some of the key real estate metrics that you need to track and review regularly. Doing so will help you successfully weather the real estate shift that we are in the middle of.
Real Estate KPIs: Lagging Indicators
Most real estate teams focus a lot of their attention on lagging indicators. These are real estate metrics like active, closed, and pending listings. Team leaders will use these numbers to forecast where their business will be heading in the future. The problem with that is it’s kind of like standing at the back of a ship looking at where you came from in an attempt to figure out where you’re headed.
Don’t get me wrong, looking at active, closed, and pending is a great way to review past performance and assess how successful your team has been. Coupled with a clear idea of the types of actions your agents have been taking, these real estate metrics can help you review whether your current strategy has been working well or not.
The problem is, they don’t give you a clear view of where your business is headed. For that, you need to look at key leading indicators.
Real Estate KPIs: Leading Indicators
If lagging indicator real estate metrics are you standing at the back of the ship, then leading indicators are you standing in the crow’s nest. They help you see right where the ship, or your business, is heading and why. When thinking about real estate KPIs for your business, these are some of the most important ones for looking forward:
- Number of leads generated
- Number of contacts made
- Number of appointments set
- Number of appointments met
- Number of contracts signed
These metrics allow you to see how much business is currently in the door, how much is right outside the door, and what business is on the horizon. They also give you a good idea of how much successful effort your agents and ISAs are putting in to create more business for your company. By understanding these key real estate metrics, you are in a better position to make fast decisions about where to focus your resources in the tightening market.
The Real Estate Shift Doesn’t Have to Be Scary
A tightening real estate market can be stressful, but it’s not the end of the world. You just have to take the right steps for your team now. A big part of that is understanding your agents’ current performance and what business is coming down the pipe. At Smart Inside Sales, we recommend that team leaders look at the lagging and leading indicators we mentioned, as well as other important metrics like:
- Lead spend
- Conversion rate
All of these real estate KPIs should be reviewed weekly, monthly, and quarterly. That way there won’t be any surprises, and you can have the information you need to make any tough decisions that come up. Knowledge is power. You just have to start collecting it.
If you are a team leader and worried about the coming real estate shift, then check out our Leadership & Management Coaching program. We help you focus on ramping up the accountability, organization, and communication of all aspects of your business, as well as crafting and executing an effective plan for dominating your market.