More on Market Conditions

Leaders gain respect on the example they set. That means having a positive attitude that things will get better when we do. In this type of real estate market we need to develop creative responses to the opportunities and challenges that exist. By creating a vision within our industry that this is a down market, that is exactly what we will get. (No help from the media) This is more a normal market and the past five years or so have been an above normal market. (An order taking business).

I have read various reports that some markets are down 20% compared to last years record breaking sales. Well, that means we have to increase our production and grow by 20% if we want to keep the same volume. How do we do that? My opinion, agents and organizations must first be willing to change in order to meet today's challenges. There is no such thing as a bad market or a good market. It's just a market.

Back in 1981 when interest rates reached a peak of 21% most people thought the sky was falling. That was the year we opened our doors for business and did not know any better. Putting transactions together on land contracts at 9 to 11% interest was the solution of the day. Soon things evened out and that was history.

My point is, today we have too many things going for us to think negatively about market conditions. Interest rates are still at 40 year lows, buyers have more homes to pick from, and sellers who take a 15 % hit on their home sold at $200,000.00 ($30,000.00) can pick it up on the purchase of the $300,000.00 home ($45,000.00) with a $15,000.00 gain. Other opportunities exist for agents to start building inventory for the spring market right now with expired listings coming through at record numbers, for sale by owners getting tired, and investors back on the scene of buying investment properties. Activities create production.

So, maybe we have to work 20% more efficient then last year to do the same volume. Maybe we have to increase our attitude by 20% about why now's the time to make your move. Maybe we have to trim our budgets by 20% and focus more on personal contact. There are numerous ways to create business if we focus our efforts back on the basics. Soon things will even out again.