Even before your MLS stats show signs of improvement you will get an earlier indication from the activity in the commercial market.
Because they are not directly involved in the commercial part of the business, most residential agents fail to stay on top of the commercial activity in their area. In many cases commercial real estate can be an early warning system for an upturn in a market. However, it may also work in the reverse with a downturn in the market. Buy staying on top of the commercial activity you will have the opportunity to inform your client of the possible change in the market regardless of whether they are a buyer or a seller. As a buyers agent at the first signs of commercial activity you might be able to encourage them to make a decision prior an escalating market. Working with a seller can be more challenging. You need to explain what direction you see the market headed. They than can determine how soon they need the money from the sale. You don't want to create an unreasonable price increase if you can help it and you will want to remind them that they are still a second buyer of their property. (see earlier post).
Lets look at some possible reasons for this early warning system. Increase in demand for commercial space is generally triggered by either current business expansion or new start ups. Business is feeling optimistic about the future. This activity will require more employees and the local economy will start to expand. The increase in residential activity will come from families that have been doubling up because of money problems and /or lack of work. Some of those people can now afford to buy a home. Home ownership is a dream for most people. That is what we sell. New jobs will also bring new people into the area - this means more housing needs.
While this process does not happen over night it will still help the market. We are all busier than ever mostly because of all the paperwork involved in any traction. Spending a little time each week watching the commercial activity might pay you dividends.
If you are a residential agent that would like to expand your business into your local Commercial Real Estate market, with NO UPFRONT COST, than call
Michael Sloan, CCIM at 208 946-5271 or on the web at group1realestateconsulting.