The other day I was having lunch with at a civic group and we all must eat with someone we do not know as to share our background and knowledge with one a nother. During lunch this young man who is employed in the medical services industry asked my "So what do you do now?" I looked puzzled and and replied politely I do not understand your question. He restated his quaestion " Well now that the bottom has fallen out of the real estate market what are all you agents going to do for a living?" I simply responded "continue to sell real estate..."
See folks, for those of you are new to the business remember all industries have corrections in their marketplace. We are in a correction mode for the next 18 months in real estate and home building. Prices in some areas are ridiculously high, other areas are over run with sub prime foreclosures and the 0% Down loans have all but gone away. The other side of the coin however shows us with higher home ownership than any other point in US history, the foreclosure market still represents only a fraction of the total mortgage market and international businesses and US based businesses are still healthy and growing so jobs are stable
As with all market corrections we will see some good people forced out of the real estate industry as a whole. This is part of our economic cycle and yes good times will come again....Another problem will be to educate consumers that a 7% interest rate on a 30 year fixed mortgage is still a good rate. When you compare current rates to the 30 year average the 30 year average is still over 8 75% after a decade of rates at or below 6%.