Are real-estate agents heading for very hard times?
Here’s an excerpt from the WSJ’s op-ed page.
“Unfortunately, there is significant risk of a VERY BAD(italics mine)
period, with slow sales, slim commissions, falling prices, rising
default and foreclosures, serious trouble in financial markets, and a possible recession sooner than most of us expect. Deterioration
in that intangible housing market psychology is the most uncertain
factor in the outlook today(WRITER WAS EARLIER TALKING ABOUT BUYER EXPECTATIONS AND PSYCHOLOGY). Listen hard and watch out.”
My opinion is that it will be at least as big, if not bigger, than the dot-com bust…….thank my lucky stars I stopped selling real estate,
and now have a regular paying job. Who will possibly be left selling real estate in 2-3 years, and for what pittance of pay, if any?
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Let’s not get taken away by ‘media hype’ just yet, please be reminded that the media and good news is not a mix. IF this would come true, and there are cycles, the first to go will be the independents because of their small base. The major ones will cut back but will completely survive.
It really depends on how you look at it. Discount Realtors, dot Com’s and on line real estate companies are cleaning up like crazy (I work for one – not as a realtor). I suppose the “traditional” way of selling real estate will be gone. For Realtors it’s time to move with the times and advance in this industry.
I bought my house online and without the pressuring sales people.
i’ve been in the business for 13 yrs and it happens every once and a while so the market can stabalize after it peaks. it needs to level off. I know it’s been horribly slow in the past 6 months. homes are sitting on the market for over a year because people aren’t asking realistic prices so no one buys it. it’ll level off in the next 18 months or so. prices will have to come down eventually. that’s why renters have increased in the past 12 months. it’s a waiting game at this point.
Keep in mind………..
Times and markets are changing!
In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market ‘timing is everything’! So, could you afford a loss of 25% of your investment all because of poor timing???
This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.
From 1990 to 1996, the average home in San Diego lost 20% of its’ value! The cycle we are now enterng looks like it could well exceed that on the downside!
With all the 100% financing, interest only loans, EZ qualifing etc…even a slight decline will cause many to be unable to sell for the amount due on their loans!
For some great ‘insider’ articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years…..visit:
As a Realtor for 15 years:
We are doing great right now in this “slow” market. Yes it is very slow but – traditional brokerages like Keller Williams, Coldwell banker and Remax are the first who are going to to start hemoraging money.
Only the smaller type brokerages that have the ability to change are going to come out profitable and on top.
you may have read too much liberal media, but you are right somewhat right this year in the US,but the liberal is spreading such propaganda a couple of years ago, particularly in the year of US presidential election in 2004