There’s nothing typical about the current housing market, but the changes in housing aren’t just revolutionary, they’re evolutionary too. And it’s not limited to housing; the broader economy is being transformed almost daily. The stock market is volatile. Home prices are falling. Foreclosures continue. Financial markets are struggling. How will the real estate and construction industries survive?
The answer is simple, and has been evolving for several years. In many ways the era of business as usual has ended. Techniques and methods that worked five years ago may not cut it today. We’re experiencing what might be called a tectonic shift; but unlike Tuesday’s east coast earthquake, this one has nothing to do with the earth’s crust. Instead, it reflects evolutionary shifts in the economy, consumer perception and the housing market. Many of the changes we’re observing may soon revolutionize the housing industry and the manner in which homes are sold.
However, the market is not going away; there we will always be new homes built and homes being sold. Both builders and real estate agents will continue to earn income . . . at least some will. But the manner in which the transactions occur may appear vastly different from today. With consumers now skeptical of the concept of home buying as an investment, new approaches to marketing must be developed; and as real estate agents compete for a share of the smaller market, new compensation structures may evolve.
Successful builders of the future will adapt to the evolving needs of a changing demography; homes won’t just have more features, but the latest technological advances in construction. Builders will seek to adapt to the requirements of a more enlightened consumer; much of the flash and sizzle will be replaced by function and efficiency; and homes will be designed to accommodate changes in the family structure.
Successful real estate agents will find or create new ways of promoting and charging for their services; they will network more, develop creative and exciting marketing systems and will work to better understand the needs of both buyers and sellers. New techniques are being tried every day by those adventurous few who dare to go beyond the bounds of the norm. Some of those efforts will fail; but an adventurous and creative few will achieve new levels of success and accomplishment. In the end, most will benefit, except perhaps, those who fail to adapt. Yes, dramatic changes are coming, but the changes in housing aren’t just revolutionary, they’re evolutionary.
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