Navigating Technology in California’s Real Estate Market

Over the last few years, California’s real estate market experienced unprecedented highs followed by a sudden downturn, leaving many agents scrambling to adapt to changing conditions. With transactions soaring to record numbers in 2021 and 2022, fueled by low mortgage rates and shifting buyer preferences, the industry seemed like a surefire path to success. However, as mortgage rates began to climb in 2023, sales plummeted, leaving agents facing a challenging landscape.

For newcomers, the allure of quick commissions drew them into the market, only to find themselves struggling to close deals in the face of a limited supply of properties for sale. The reality of the industry became apparent: success in real estate hinges on more than just a charismatic personality; it requires adaptability and perseverance.

In a market where sellers are scarce, agents have had to get creative in their search for leads. Some have turned to technology, utilizing tools like ringless voicemail and AI-powered assistants to streamline their outreach efforts. While these tactics may increase efficiency, they also raise concerns about privacy and authenticity, with homeowners feeling inundated by unsolicited calls and messages.

The Federal Communications Commission (FCC) has taken steps to address the rise of robocalls, shutting down campaigns that use deceptive tactics and outlawing the use of AI-generated voices in robocalls. However, the battle against unwanted calls remains ongoing, with homeowners continuing to receive billions of telemarketing and scam calls each year.

So, using technology for an improper purpose or in unapproved ways must be avoided. Notwithstanding, the value of technology in generating content and managing data cannot be understated. Using AI that uses a large language model (LLM) for example is a great way to generate content that can be shared online or via more traditional methods like direct mail campaigns.  These LLM based AI platforms can create well written and persuasive marketing materials. Other systems and services can collect and analyze data to locate potential prospects and customize campaigns by client type.

Despite the growing influence of technology, many agents still rely on traditional methods of conducting business, emphasizing the importance of personal connections and local expertise. Such skills cannot and should not be ignored. Instead, they should be integrated into the marketing plan along with technology. Building on what you have and know with technology is a growth strategy that will pay dividends both in the current market and in the future.

As California’s real estate market continues to evolve, agents must navigate the shifting tides with resilience and innovation. While technology offers new opportunities for efficiency and outreach, it also presents challenges in maintaining the personal touch that clients value. Ultimately, success in real estate requires a delicate balance of tradition and innovation, along with a knowledge of the legal boundaries of real estate marketing.