Recession, depression, or compression in the Real Estate market? It doesn’t really matter!
Many of the economic pundits are predicting that our economy will weaken over the next couple of years. Many more have said we will see a recession that could impact the Real Estate sector. I actually heard one of the popular analysts compare what he thinks is coming to a depression like 1929! Does any of this really impact you as a real estate professional? Let’s examine this a little further.
The Housing Market
First, mortgage rates are at a historic low. Under 4% for a 30-year loan and the Fed says they will cut further which could cause a slight additional drop. Second, housing demand is at a low compared to housing availability. We simply aren’t starting enough new homes to have enough available to the new entrants into the housing market. That means that supply is low and demand is high with more people able to qualify with lower loan payments! Sounds like a solution, not a problem!
How to prosper
That means even if only the same number of houses sell next year, the agents that set a business plan in motion to let people know that they can purchase first time, move-up to something better, or capture their equity and down-size easier than at almost any time in recent history will continue to succeed. If the market drops off a little, those who aren’t consistently pushing their relationships and marketing are the ones who will decline in the number of sales. Don’t let the market have any effect on you. Set your target, figure out the best approaches to hit your target and break down each approach to the little things that need to be done consistently to succeed in each approach. Once you have done that, track what you do for each of the little things and the approach becomes successful and the target gets hit, regardless of what the economy does!