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The Knee Bone's Connected to the Thigh Bone...

By
Real Estate Agent with Casmi Photography

I had a most interesting conversation this morning about the state of our local economy.  This conversation would not normally have stuck with me as strongly except for the comment made by a member of the group.  The comment?

"Well just what does economic development have to do with Real Estate?  Houses and businesses are different!"

I must have looked like someone just stomped on my foot because the woman sitting next to me reached over and asked if I was all right.  I truly was speechless - and if you knew me you would know that most people think that that is not possible - ever.

After giving my brain time to digest this most incredulous statement I had to come back at her.  I couldn't stand it!

Me:  "How can you say that?  Do you really not have a clue?"

Her:  "They are not related.  What's the big deal?"

Me:  "The 'big deal' is that if an area does not have businesses, also known as a tax base, then there are less people that want or need homes.  If they don't want or need homes, then we are obsolete."

Her:  "That doesn't make sense!"

Me:  "It makes perfect sense.  Call it the ripple effect, call it trickle down economics, call it whatever you like, but it does make sense.  If you owned a store and all the people moved from your community, would that not have an impact on your business?"

Her:  "I would just move the store!"

Me:  "I think I'm done here.  This is going nowhere fast.  Please join me at our next independent economic development coffee klatch.  I'd like for you to meet some folks."

 

Now, is it just me or does anyone else see this is being totally blind to what happens to areas when the business/mfg/industrial base leaves?  The worst part is that this person is a Realtor and has been for more than 20 years!!!!!!   I am still stunned by the ignorance (I don't know a better word for it) and arrogance to think that a poor economy has no effect on real estate.  

Perhaps I am just a little too dedicated to making my city a success.  Perhaps I am delusional.  Perhaps....

Oh well, if I am all those things, then I'm going to be even more so.  Without our input, as an industry, and our involvement there would be a reverse effect on whether businesses wanted to locate in our areas.  It goes along with that old kids song....the knee bone's connected to the thigh bone, the thigh bone's connected to the hip bone.... 

Posted by

 

Carol Smith

Casmi Photography

Mebane, NC 27302

919-418-6549

casmiphotography@triad.rr.com

 

 

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I'm stumped.  Were you at a meeting of local apple peelers???

If housing didn't influence businesses, why does the stock market tank each time there is an uptick in mortgage interest rates or a downtick when new building permits fall???

$18Trillion in real estate assets is a lot of business.

Someone has been spending too much time contemplating their navel. 

Jun 07, 2007 03:43 AM
Roger Stensland
Keller Williams Realty Puget Sound - Maple Valley, WA
Let's Move!
What you say is true.  This is exactly what caused the inner cities to decay in many cities and why is is so important to revitalize them.  If businesses move out the only people left behind are those who can't afford to move.  Without jobs the economy isn't in a downward spiral it is in an out -and-out plunge.  Also, it is so expensive to move a business that not just any business can successfully pack up and move.
Jun 07, 2007 03:44 AM
Klaus Nicholson
ROSE ANNE ERICKSON REALTY, LLC. Columbus Ga, Ft Benning, - Columbus, GA
Realtor, Columbus Ga Homes, Fort Benning Homes
You were very nice in your attempt to educate an obvious idiot. Carol, the truth is you are not supposed to wake up anybody that is sleep walking. lol
Jun 07, 2007 04:04 AM
Carol Smith
Casmi Photography - Mebane, NC

Lenn - I was so stunned I couldn't believe what I was hearing.  And this was from a person that is reasonably intelligent - about most things.  Obviously not real estate.

Roger - You are 100% on point with that comment.  Would you like to come to Toledo???  

Jun 07, 2007 04:04 AM
David Helm
Helm Home Inspections - Bellingham, WA
Bellingham, Wa. Licensed Home Insp
Another aspect of this stupidity is the local newspapers printing stories regularly about how the real estate market is a bubble, how it is crashing, how home sales are disappearing.  These articles are usually national wire service pick ups and have nothing whatever to do with the local or regional market.  Yes, some markets are down, but others are up.  This is an example of doom and gloom self fulfilling profesies.  Local papers should talk to local realtors and, maybe, check out local closing statistics.
Jun 07, 2007 04:56 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!

The amazing part of this blog was the statement made by a Realtor ... "Well just what does economic development have to do with Real Estate?  Houses and businesses are different!" I'm not sure how you survive in the business of real estate without being able to make the connection between business or it's lack thereof and home sales.

Jun 07, 2007 11:29 AM