Real Estate Brokers' Careers Threatened as Tech Burgeons

• 4 min read
Real Estate Brokers' Careers Threatened as Tech Burgeons

SOMETHING INTERESTING

With the current labor shortage looking bleaker, businesses must reevaluate strategies for employee incentives and retention. Here is a great thread (from a 27-year-old CEO of a $4B company, no less) on a unique philosophy in creating a great company culture while also facilitating powerhouse business growth - check it out:

MARKET MOVERS

  • Bank Mergers are at an all-time high as smaller banks struggle to compete with the high-end tech and digital offerings of megabanks. Banks have announced more than $54 billion in deals through late September, according to Dealogic. That puts industry mergers and acquisitions on pace for their biggest year since 2008. The pressure to scale up has only grown more intense in recent years for megabanks. Read more here.

  • Debt limit standoff continues, possible financial crisis and economic recession loom if the Treasury can’t repay bondholders as debts mature. Treasury Secretary Janet Yellen stated, “It is imperative that Congress swiftly addresses the debt limit. If it does not, America would default for the first time in history.” Yesterday Senate Republicans blocked a Democratic bill that would both fund the government and raise the borrowing limit, escalating this political showdown over the government’s finances. Read more here.

  • Google’s at-home COVID test provider is now a $3 billion company traded on Nasdaq. Cue Health (HLTH) debuted on the Nasdaq last Friday. Google became the company’s biggest private-sector customer when the need for at-home tests became essential this year. The two companies plan to expand their partnership to create an advanced respiratory biothreat detection system, according to Cue Health’s prospectus. Read more here.

  • Let’s talk updates in the EV sector...Electric startup Rivian’s first-to-market EV pickup truck boasts some promising features: an EPA-certified range of 314 miles, a separate electric motor for each wheel, creating an adaptable 4-wheel-drive system for excellent off-roading capabilities, and a sticker price starting at $69,000. Read more here.

  • Ford doubles down on EV with four new factories in Tennessee and Kentucky, an $11.4 billion investment. The move amounts to a major bet on electric cars as traditional automakers compete with EV leader Tesla Inc. Source. Those bullish on Tesla shouldn’t worry, though...

  • Tesla’s third quarter will be its best ever, seeing a 50% upside for its stock. Investment firm Piper Sandler projects that Tesla will deliver more vehicles in 2021 than previously projected, and their market share has also continued rising. Read more details on Tesla’s stock and market share here.

WHAT TO WATCH

  • The future could look bleak for real estate brokers as RE tech burgeons. The question to ask is, if Zillow is buying and reselling homes, then why do you need a real estate broker at all? Well, you don’t really. However, we do think it’s likely brokers will still be needed in the luxury market for those homebuyers who value a high-touch, white-glove buying experience. Automation and easy-button tools are the future. Listen to more here (22:04).

  • Let the forbearance continue. The FHFA announced that Fannie Mae and Freddie Mac will continue to offer forbearance indefinitely to qualifying multifamily property owners. In light of the pandemic uncertainty, the FHFA is taking further action to protect renters, property owners, and the mortgage market. Property owners with Fannie Mae– or Freddie Mac–backed multifamily mortgages can enter a new or modified forbearance if they experience a financial hardship due to the pandemic’s impact on their business operations. Read more here.

  • The dramatic increase in household wealth likely contributing to the labor shortage. The US household net worth is up almost 20% from this time last year, largely due to stock earnings and real estate appreciation, according to this CNBC article. As a result, there’s greater reluctance to work, older workers can now retire early, and many others have enough of a nest egg to walk away from work they don’t need. All the more reason big players like Amazon and Disney are pulling out all the stops and offering great incentives. Read more here.

  • Coinbase will now enable direct paycheck deposits. The new feature will help several things: allow users to make investments, earn interest on digital assets, and pay for goods and services with greater speed and efficiency - easing the time-consuming nature of frequent transfers. Coinbase will now allow users in the U.S. to deposit as much or as little of their paycheck at no fee, in either crypto or fiat currency. Read more here.

FINAL THOUGHTS

“...to succeed in the Infinite Game of business, we have to stop thinking about who wins or who’s the best and start thinking about how to build organizations that are strong enough and healthy enough to stay in the game for many generations to come.” - The Infinite Game, Simon Sinek

Businesses, companies, and organizations that stand the test of time are not the ones who just “play to win,” but are those who reposition their strategy and primary objective to this: Keep playing the game and play it well. Growth, in both life and business, cannot solely be measured in dollars and cents, but must also be measured in quality of life, overall progress, and the ability for the vision to outlast the visionary.

← 10 Decisions That Determine How Wealthy and Happy You Become
Global Governments Frightened, Exerting a Grasping Need for Crypto Control →

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