Being professionally coached at different times over the years I was always told to make sure I think and plan ahead. I find it to be a thing I practice more these days simply because the market is challenging at the moment. This isn't wishful thinking but rather seriously thinking through what things are going to look in 3-5 years from now. I have been mainly thinking about 3 things.
1. The economy-the economy will be very different 3-5 years from now. There are economic cycles that are simply unavoidable. There will always be periods of growth and periods of recession. I believe our next period of economic growth in the country will be a much longer period than our most recent boom (03-06), however it will grow slowly with some periods of no growth at all. I think there could have been a much more rapid and more expansive growth but I think the tax burden in the future will place a heavier burden on private job growth and consumer spending. Our economy is in the process of being "right sized" from the days of "super sized", it is a painful process but one that is absolutely necessary for our survival. Unemployment will be a tough nut to crack and will repain stubbornly high for another 2 years. Not until the private sector feels comfortable with legislative legisitics will high levels of hiring return in the jobs market.
2. Housing-the housing market will be probably the healthiest it has been in decades a few years from now. Not only will there be a high level of ownership but it will also be "smart" owners. The next round of buyers will be smarter and wiser making more informed financial decisions. The were will be a healthy balance of supply and demand and consistent levels of appreciation at 2-3% annually topping out at 4-5%. Real Estate will not be in the headlines everyday like it has been for the past 6 years. There will be a sense of normalcy in the markets including the mortgage market where rates will hover in the mid to high 7's. Realtors like us will benefit in a huge way as sales will be divided amongst a much smaller crowd, we'll get a bigger piece of the pie. Sound like a dream...nah...save this blog because this will be reality in 3-5 years. Partly because of economic cycles but mainly because everyone needs a roof over their heads and people continue to born and die everyday!
3. People and technology-this is probably what consumes most of my time. I continue to be amazed at how much people and technology are changing. I can't stress enough for all of you to buy http://thankyoueconomybook.com/ Gary Vaynerchuk the author of "Crush It" a NY times bestseller calls what is happening the "Humanization of Business". Basically facebook, twitter, and other social networking sites are becoming the "word of mouth" that once powered our economy. People will know in an instant if you care or not, simple as that. People are developing a 6th sense, it is called smelling fakes. A new generation of "small town" thinkers are growing up and demanding that people give a crap again and a lot of the "big coroporate guys" are missing the boat! Mom and Pop shops will be in style once again as small companies find ways to compete against the "big guys" through social media and "connecting" with people at a very real level. That is what I LOVE about real estate, it ALWAYS consists of people. You can't elinimate people from the equation and if you use technology to show you care about people and want to geniunely connect with them and serve them you will WIN! Real Estate is a business that can win even in the new technological age and I am thrilled to see how that plays out.
So that in a nutshell is what I see happening out there over the next 3-5yrs and these are things I keep thinking about. So what are you thinking about?