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2020 witnessed some of the most curious and interesting trends in the Real Estate Industry. Conducting business amidst a raging pandemic drove most teams to a fast-paced adoption of technology and change their regular business modes. Real Estate Brokerages have learned the rapidly increasing importance of data to make this shift. But the biggest blocker that most teams face is how to collect this data to plan their next steps?
A data-driven approach is the only way to build and train a winning team in the highly competitive real estate market. Our team of data scientists is trying to bridge this gap by making data accessible for you and your agents. After analyzing over 100 CRMs in the past two years, the team put together some essential metrics on lead sources, connectivity, and conversion rates. Based on this, we have compiled the summary of our findings in easy-to-understand data visualizations. Kickstart 2021 for you and your agents with a quick overview of 2020 in the real estate market.
Monthly Closure 2019 & 2020 vs. Mortgage Rate
The following graph displays the trends of closure in 2019 and 2020 with respect to the mortgage rate in the market.
- With the decreasing mortgage rate in 2020, there was a significant rise in total closed leads.
- The dip in the mortgage rate has led to a rise in home sales and new listings making the US housing market more active than normal in off seasons.
The following chart displays the distribution of leads across multiple stages in the funnel.
- The unconnected stage in the leads funnel indicates a lack of follow-up or any logged calls, texts or emails.
- The cold/dead stage highlights the need for a well-planned and consistent reach out strategy to warm up as many leads as possible.
- The aged leads (lead age of 29-30 months) require a nurture strategy to ensure a higher number of leads reach the next stage in the funnel.
- Connect with more leads at the top of the funnel and continue to follow-up and connect with leads in the cold stage.
Our analysis indicates that some performance metrics of the top teams in the real estate industry are key to understanding the factors behind their success. Here are 4 data visualizations that will help you pinpoint these benchmarks and milestones to drive better outcomes and join the winning teams' league.
Connectivity Rate By Lead Source Across Teams
The following graph displays the average connectivity rate of agents across multiple lead sources.
- Compare the connectivity rate of the top 20% of the teams with the average connectivity rate of the rest.
- Learn more about your agents' performance in terms of connectivity rate to benchmark them with the top 20% of the teams and the average teams.
Conversion Rate By Lead Source Across Teams
The following graph shows the top 20% of teams' performance compared to the rest of the teams' conversion rate.
- Compare the conversion rate of the top 20% of the teams with the average connectivity rate of the rest.
- Learn more about your agents' performance in terms of conversion rate to benchmark them with the top 20% of the teams and the average teams.
Conversion Rate By Lead Source Over Time
The following graph displays the conversion rates across multiple lead sources in the past year.
- The conversion rate of leads, primarily Sphere leads, significantly increases over a year and more.
- Follow up with and nurture old leads, especially those in the cold stage of your sales funnel, to not let them slip through the cracks.
The following graph displays the average agent effort of the Top 25% agents and Bottom 75% agents.
- The connectivity of agents is measured through average calls, texts, and emails per lead. It is an important metric to overview agent effort at a glance.
- Benchmark the agent effort of your team by comparing the effort of top 25% agents and bottom 75% agents.
After rigorous research conducted for over two years and interviewing some of the topmost industry experts, our team of data scientists came up with these key findings to help you wrap up an eventful year and scale new heights in 2021.
Access to data is paramount in driving better growth in your business. But keeping track of complex data across multiple dashboards and spreadsheets can be overwhelming. Auctm's analytics platform helps top real estate teams adopt the data-driven approach with easy to understand data-visualizations and performance metrics.