I just read a fantastic little insight into the state of real estate. What If The Real Estate Market Doesn’t Recover?

I’ve been arguing a bit with you guys on Facebook and ActiveRain about whether we’ve seen a bottom in real estate or not. The general consensus amongst Realtors seems to be that ‘09 will be a comeback year for real estate. It’s important to me to not position myself as the expert here. I’m not an economist. I’m a Realtor, blogger and internet marketer. That does not qualify me as an expert on finance the last time I checked. I do, however, have many questions that I feel are worth being asked, and so far no one has offered an answer that puts me at ease.

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4 Comments on When Will We Make Money in Real Estate Again?

FEB
10
2009
8 Featured Posts

I personally think until the mess with the foreclosures are cleared up that real estate will continue to falter.  I think 2009 will be much worse for many agents in many areas.  I don't see and end to this mess until the economy improves either.  I think we are looking well into 2010 or longer before real estate is a healthy profession again.

This isn't a doomsday prediction either... It's based on the fact that our economy is closely hinged on the real estate and vice versa.
1:36pm • #1
439,082 Points 2 Featured Posts Outside Blog Called Shot Master

Hi Christian~ I went ahead and read the rest of your article.  Of course we all are hoping that the market bounces back.  But, I think it is changing and it will never be the same again. Just the Internet alone is making real estate totally different.  It is time to re-think what we have been doing and figuring out which way the market is forcing us to go.....
1:40pm • #2

Everywhere is going to be better for some.  Unfortunately, if unemployment continues to rise, it will force more foreclosures.  No job, no mortgage payment, right?  If foreclosures continue, the pressure on home values has to continue downward. 

I am optimistic, but logical too.  I think there are patches of good sprinkled everywhere and I'm focusing on those patches.  Will things bounce back in 2009?  I sure hope so, but I also believe it will be the tail end of 2009 not any time soon. 
1:42pm • #3
FEB
11
2009
1 Featured Post

Julie - I agree. Foreclosures are a huge force that need to work their way throught the system. We have a big commercial crash coming as well in my opinion that we haven't even begun to deal with. Look at what happens to commercial in '09 to see if I'm right.

Also, when inflation pops this year and next, that will have to lead to a lot more down time. Even though asset prices will continue to fall (which is a good thing), fewer people will be looking at buying, due to the fact that groceries will become a bigger concern.

Vickie - I was born in Owensboro! I agree that it will not be the same again. At least not in this lifetime. I would submit that the way the market is going is that it will require us to create value for clients, instead of just closing deals. Transparency is key, and that inevitably includes bringing all MLS walls down.

Randall - You're right that if unemployment continues to rise (and there is a lot of pressure in that direction), foreclosures will continue to go up as well. Also don't forget that we have millions of ARM's that have not even begun to crack into the market yet. When we see people needing to refi homes at prices that are WAY above market value, that will commence and entirely new wave of foreclosures that is even bigger than what we've seen to date.
12:43pm • #4


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Christian-russell

Christian Russell

West Lafayette, IN

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R World Properties

Address: 2506 Covington Street, West Lafayette, IN, 47906

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