What the Uncertainties of the Market may Teach and Show Us
A damaging, albeit less direct, force—acute uncertainty—was amplifying the fear of physical harm as Hurricane Ian roared into the west coast of Florida in September. Also, chronic instability, interspersed by periods of turmoil, may have become the “new normal” in recent years, but sudden spikes in uncertainty, whether brought on by hurricanes, quick changes in real estate markets, or sudden geopolitical events, nevertheless have the power to disrupt, dislocate, and resonate.
Another this to consider is when stunning real-time photos and in-depth coverage of catastrophic weather disasters produce persistent risk perceptions that endure even after recovery is well under way, it is especially detrimental for the residential real estate industry.
Even while even the most precisely designed plans often get wrecked by unforeseen events, they are nevertheless a vital tool. A large audience that may otherwise be left in a vacuum, extrapolating the worst-case scenario, is given a reassuring context by thoughtfully designed response tactics that identify priorities, establish clear routes of command, and do so.
With a solid plan, it is possible to react more swiftly and efficiently, turning to particular, constructive steps. As our Florida-based friends at Premier Sotheby’s International Realty
prepared for the approach of Hurricane Ian, we at Peerage Realty Partners, witnessed the value of such thorough preparations. We should be prepared all the time.
The leadership team sent a document with a visible hotline for all employees, advisors, clients, or basically everyone, before impact. It contained a facility damage report form, extensive supply checklists for protecting office equipment, precise descriptions of each employee’s roles and responsibilities within the company, and complete contact information for each office. It included numerous other resources that helped to organize and comprehend the unknown, including recommendations for reliable information sources, a straightforward vocabulary of meteorological words, and many other stuff.
Residential real estate markets in North America have recently been affected by the “perfect storm” of limited supply, unpredictability, and rising interest rates. Although unanticipated circumstances that are beyond our control have frequently resulted in the budget plans for 2022 falling short of the benchmarks set a year ago.
The additional potential for growth that result from disruption, however, actually boost the value of the thoughtful process that guides budgeting and planning. Even if there are a few diversions along the route, the only way to know where you are heading is to have a current road map.