The Cold Reality of Southern California’s Real Estate Market: Agents Turn to AI and Automation to Survive

The real estate market in Southern California is as cold as the snow on its mountains, with interest rates up, inventory down, and deals hard to come by. In this challenging environment, new agents are struggling to find leads and make sales, leading some to turn to alternative methods like outsourcing overseas or using AI and automation.

During the pandemic market boom, real estate agents were thriving, but as the market froze in 2023, many agents found themselves struggling to make ends meet. Some have even resorted to using ringless voicemail technology to reach potential clients, despite the legal and ethical concerns surrounding such tactics.

The use of AI in real estate is also on the rise, with companies offering tools like AI-powered digital assistants and scriptwriters to help agents generate leads and appear more knowledgeable about the market. However, the recent FCC ruling outlawing robocalls that use AI-generated voices has raised questions about the future of such technology in the industry.

While some agents are embracing these new technologies as a way to survive in a tough market, others are wary of the impact they may have on the personal connections that have long been a hallmark of the real estate industry. As one homeowner put it, “When I do need a real estate agent, I need one that I can connect with. I don’t want anything to do with their AI assistant.”

Despite the challenges facing the industry, real estate agents in Southern California are finding ways to adapt and innovate in order to stay afloat in a market that shows no signs of thawing anytime soon.