Around this time last year, Seven Gables Real Estate CEO Mike Hickman found himself cutting costs to save jobs amid the challenges of a changing market.
Industrywide, declining sales driven by high interest rates and low inventory led to layoffs at some national brokerages. Smaller shops shut down.
Seven Gables shifted some of its production in terms of design and distribution to an outside vendor, which led to its first layoff in 15 years.
“We laid off a junior designer because we no longer needed her services,” Hickman said. “It was hard to do. But that’s the only person we had to lay off, and not many companies in this industry can say that.”
Inventory of for-sale homes across Southern California is running at historic lows. The home sales year is on track to be the slowest in records tracked by CoreLogic in Irvine.
The tally for many brokerages is grim: Just 97,197 homes in the region sold in the first seven months of 2023, the lowest total for that span on record. Sales are running 41% lower than during the pandemic boom two years ago.
That hit to sales is hurting a lot of agents, too. The average sales rep did anywhere from 19% to 29% less business in the latest year measured, according to Real Data Strategies.
But Seven Gables, an independent, Tustin-based brokerage founded in 1976, has held its own, maintaining a foothold while maintaining its culture of innovation, professional development and work-life balance despite the ongoing market challenges.
While the effect of the Federal Reserve raising interest rates hurt the overall housing market, it gave Hickman and Seven Gables an opportunity to take a step back and re-focus its brand. The chief executive oversees 519 employees across seven offices in Orange County and two newer offices in Los Angeles County. In all, the brokerage is representing markets from Pasadena to San Clemente.
“We have to be strong in this market because this is a time when companies tend to get fearful and we’ve chosen not to focus on fear but rather on change,” said Hickman.
That change, the dynamic leader said, starts with a person’s mindset.
“Who we hire and that they have the proper mindset so their values are aligned with our values and vice-versa goes to the culture of the company,” Hickman said. “People are attracted to people that have the same values, not people who pound on their chest and tell you how great they are.”
Employees often boast about the company, calling it what it is — a great place to work.
For the fourth consecutive year, the firm has been honored among the top five large employers in the Register’s Top Workplaces annual program, which is based on employee surveys. It has been honored in the program nine years running.
One employee in the Seven Gables survey touted the company’s “progressive nature and culture.” A 35-year employee described it as one of “fun, respect, integrity and hard work.”
“There is absolutely no favoritism, everyone is equally treated,” another said.
The heaps of praise only complement the company’s ethos, which Hickman readily quotes over the phone: “By sparking and nurturing a love of the job for agents, we are building a better world through higher-quality home-buying and selling experiences and long-lasting careers rich in success and fun.
“That captures us perfectly,” he said. “That’s what we live and die by right there.”
Last year, he told the Register that his strategy runs a bit counter to industry trends. “The traditional methodology in real estate is to expand in concentric circles,” Hickman said at the time. “I’ve always kind of bucked traditionalism.”
It’s worth highlighting that Seven Gables runs six other operations besides the brokerage, including a property management company, two escrow companies, a mortgage brokerage, an insurance business, and a national hazard disclosure company.
When asked about his feelings towards the company’s coming 50th year of operation, it’s no surprise he expresses optimism about the market.
The company plans to grow its headcount to 750 by 2026.
“We’re nearing the end of tough times,” he said. “The next few months will be challenging, but following that we’re going to embark on a new era and it will be a healthy market. Technology will play a large role. Professionals will shine.
“People who have compassion, are growth-minded, have the right mindset, and have studied their craft will thrive.”
Seven Gables Real Estate
Founded: 1976
Headquarters: Tustin
Industry: real estate sales
OC employees: 506
Website: sevengables.com
Quote: “The market is going to be the market, and I can’t control that, but what I can control is the mindset of the individuals I deal with each and every day.” — Mike Hickman, CEO at Seven Gables Real Estate
