SURVEY SAYS! THE HOUSING INDUSTRY IS IN RECESSION. WHAT ARE YOU GOING TO DO ABOUT IT?

Hi Lenn,

The market is what it is. I, and other Realtors, choose to make Lemonade out of Lemons!

I wrote an offer today and went under contract on new construction.  No foreclosure, No short sale, just  a great price, great interest rate and terms.  I'm happy for my clients. 

Realestate 101  Adjust, Adjust, Adjust. There is a great book called "Who Moved the Cheese?" that is very helpful in attitude adjustments.

marcy Moyer Keller williams Realty Palo Alto, Ca.

Hello Lenn, what you say is very true. To remain and maintain a solid business through this down time, we as agents must remain flexible. I am finding myself listing foreclosures for the first time in my career but they are also selling quickly.

We must be flexible enough to deviate from our standard and think and "work outside the box." This is an excellent article and our economy just is what it is.

You're always a good read...happy holidays! Later in the rain~Deb

Hi Lenn!  Now this is SOUND advice for all who wish to stay afloat, not only for the next 2-3 years but, for a lifetime in business.  We MUST roll with the punches and if changing our business plan is what it takes, then so be it.  It HAS to be done each and every year about this time when we're re-evaluating our buiness plan.  Why not think outside the box and be a step ahead of the game when you get a sense that times are changing? 

You're also right that we do have to work harder to keep the gross numbers up but, isn't that what re-modeling is all about?!  There will be times that we hit the jackpot and have an easy year by selling only luxury homes--sell 12 of those a year and we've worked far less than in the years (THIS one) that we're selling starter homes and having to sell 120 of them!  If you DON'T change your business model to accomodate the economical and industry changes, you'll be left in the dust!

Congrats on that little gold star too!

Lenn,

The mortgage sector of course is having its own serious problems. There are lenders, though, that do offer a little better pricing, for instance, than most, or their service, turn times etc., is better, so it pays to form a reliable relationship with a competent loan officer.

It's good to see many agents that have moved past the denial stage. 

I really don't look at the big macro picture when it comes to my business.  Even in a depression, there's stuff happening.  There are people with cash.  There are people who bought their home 20 years ago.  I try to look at the micro angle and just sieze the opportunities as they present themselves.

Lenn, I absoluteley agree with you. I doesn't do anybody any good to paint a picture that isn't accurate. As you say, simply look at the facts and the real estate picture is very clear to me too.  This is why a year ago I decided to turn my attention to Short Sales.  It is a tough time no doubt and life will always throw us changes as life and circumstances aren't constant. Right now Agents must work hard or hang up there hat.

I had an opportunity very recently to publicly explain my local market conditions. Inventory is up, prices are down (and I think they will continue to slide), short sales and foreclosures will continue to hit market. Told it like I saw it. However, there are opportunities and it's our job as professionals to seize the opportunity for our clients.

Like I have mentioned somewhere before, you can still make it in this market if you adjust and work hard. I think I am somewhat lucky because I just started and don't have to adjust. This is the time when true real estate professionals are working, and others are leaving. Before anybody could do it.

Recessions have never and will never affect the entire country the same as there are so many submarkets in the US.  Austin was in its recession while the country was thriving in 2002 to 2004.  I think you are going to be a bit shocked that we will not suffer as bad as you think in Austin, as we hit bottom and had yet to recover before this hit.  I had 4 offer this weekend on 4 homes.  That is not to brag....that is to say that the world is not coming to an end in Austin....and this is December.  Check back on this comment in 6 months........

If He leads you to it, He can lead you through  - we just all have to know how to use the shovel.

Wow Lenn...you are one smart lady...did you want to move to the Lewis Clark Valley and work with me?  I have definatley subscribed to your Blogs...you will be GREAT to learn from.

Patty of Rock-n-Roll Realty

Lenn...indeed good advise. I'm trying to target first time buyers and get them in when prices are down are interest rates are down. But, then they hear these stories about 4.5% Interest, and BAM, back on the fence they go.

I've got to get a handle on what's going on and get my ship sailing in the right direction!

Lenn.. great post and no the numbers don't lie. But on a positive note, to survive and thrive in this market people are going to have to develop a better sense of marketing. And hopefully this developed sense of marketing carries over to the better days to come, making us all a little better than we were before.

Lenn - I'm a little frightened to write this, being some good news about our local market and all.  But I am a bit of a statistics geek - so here goes.  Colorado went into the dumps before the rest of the country.  We struggled with the highest foreclosure rates in the country and we've been doing short sales for about 6 years around here.  I do a lot of research for both sellers and buyers, especially investors.  And I'm seeing over and over, when I look at some parts of our area, things are in fact already turning around.  I work mostly the northern part of the Denver area and suburbs, and we are seeing fewer days on market, less inventory, a lower absorption rate, more homes sold, and in many cases buyers are having a hard time buying because of bidding wars.  (The ones who 'don't want to play that game' lose out over and over again.)

I do a three year sales history by neighborhood for my clients, and I've seen many neighborhoods where prices are rising.  We are still suffering from lots of foreclosures and that will keep the prices down. But the question is for how long?  I don't make promises, but people who've been playing around with the idea of buying or selling are seeing the trend - prices are sluggishly moving upward.  I wonder how much difference it would make, if they didn't hear anything but gloom and doom about the national market and paid attention to the local facts.

I just listed a house for the second time.  Last year, it would have to be priced at $100,000 to sell, but she didn't want to come down that low and took it off the market.  Last Thursday we listed it for $120,000 and it was under contract on Sunday. What if I had told her, the turnaround is years away, you must drop your price?  That would have been very bad advice!