The current real estate market reminds me a lot of the events surrounding the dot-com bust--and I'm not referring to the bubble/burst aspects of either scenario, because the truth is the real estate bubble was concentrated in certain key markets (as I've said before, Atlanta is not one of them). No, in my mind the comparison is to the professionals serving both industries through the boom, the bust, and the subsequent recovery. Read on, because this is good news for many of us!
In the late nineties we saw hordes of people flocking to the Information Technology sector--many of whom had no education, experience, or even technical prowess. There were desks to fill, and we filled them with people who had no business being there; then we charged $400 an hour to the customer for their work. It was ridiculous, and as the market started to fall apart, each round of musical chairs left more of these individuals without a seat. With poor future employment prospects, they left as quickly as they came. We then went through a very dry period, where those who held on worked long hours in difficult conditions for much less pay than before. Dot-com became a curse word, venture capital was non-existent, and the crowd seemed to get thinner by the week as more and more IT professionals left the business for good. By the time 9/11 hit, the situation was pretty grim.
Sounds darn familiar, doesn't it?
The truth is, we NEEDED the dot-com bust, and not just because the market was overinflated. The most important result of the bust was the separation of the wheat from the chaff. Most of the IT professionals of the boom days had little skill and no reason to be there; they were simply riding the wave of the easy money. The trees needed pruning, and the bust did just that. But even more importantly, those who made it through woke up one day to a new market where the demand for their skills was higher than ever. And you know what? People respected the fact that they'd survived, and they and their future employers knew they were better for the experience.
I don't know about you, but I intend to survive this market. Actually I intend to THRIVE in this market! We will probably lose 50% or more of our number in this down cycle, but those of us left holding the banner will be much better for the experience. We don't learn much when times are easy; the fires of this trial will cleanse us, and we'll be worth more to our clients when this is over.
Comments(2)