How Bad is the Real Estate Market?

I am beginning to hear many real estate agents finally talk about how bad the real estate market is. That’s not to say I haven’t heard the gloom and doom from offices and agents, but the talk of a bad has been spoken in some locations. There were always those few who insisted things were not really that bad, and that their business was actually up over last year. Now, reality has set in for most real estate agents that I come in contact with around the country. The funny thing is when you compare the economic conditions of today with those from the late 70s and early 80s; our real estate market today is not that bad. In fact one could say today's economic environment is quite attractive when compared to the early 80s. Back then, real estate professionals not only had to battle economic conditions of high unemployment rates and other inflationary items, but we also had to deal with high interest rates. I remember closing several real estate loans where interest rates were 17% and 18%. Today there are many properties for sell, and very few buyers. Back in the early 80s, there were not only a lot of properties for sale, but very high interest rates. You really couldn't blame buyers for not entering the real estate market in the 80’s because of the price to borrow funds. Today, we have low interest rates and a large supply of inventory which actually makes for a perfect buying environment for consumers. Unfortunately many of our homebuyers are staying away from the housing market because of the fear the news media has placed upon our country.

So my question is this; how do brokers and agents combat the bad media hype? First, I believe we should remind our agents that the real estate market is not as bad as it may appear to be. It's important to note that interest rates are still low, and buyers can get much more for their money than they could several years ago.

Brokers must also remember that now is the time to motivate their team and meeting on a regular or weekly basis for sales meetings is important. As a broker there are many avenues and sources for uplifting stories that can encourage and remind your staff that this too will pass.
Brokers need to spend more one-on-one training with their agents listening and discovering what areas of help these agents need. It's also a good idea for real estate agents and managers to begin to revise and look at their business planning. If an agent already has a business plan now is a good time to revise that plan. Real estate professionals should also begin to look at new ways they can make their businesses grow for the future. Revising action plans, setting in place checklists and systems as well as developing a marketing plan are all good items to consider when the market is slow.

Finally, agents should remember there is still business to be found even in a tight market. What I found to be prevalent in the early 80s was a weakening of the competitive forces in my marketplace. Many agents began to get discouraged or drop out of the real estate business and those who were willing to continue to work hard, prospect and look for new business were able to survive and make a good living. I'm reminded of my mother's comment that she always made around our real estate office: all sunshine makes a desert! So as I started the blog with a question; “How bad is the real estate market?” The answer could be, yes, it may not be the same kind of market we've experienced over the last few years, but overall and compared to other slow economic times in our Nation’s history, our real estate market is probably not that bad. Continue to encourage your agents to stay optimistic, to read positive books, listen to good motivational tapes and prospect for new business. If everyone will continue in that same vein, you're sure to weather the storm.