Eileen's Blog

The Real Estate Cycle is Turning Slowly

March 8th, 2011 5:02 PM by Eileen Denhard

Although Slowly, the Real Estate Cycle Is Turning

Business Building by Margaret Kelly RISMEDIA, March 8, 2011—Housing recovery may seem like a mirage in the desert of record foreclosures and steep unemployment, but history indicates that a more balanced market is in our future.

Real estate has always been and always will be cyclical. Recent numbers—namely gains in existing- and new-home sales, increasing activity among investors, upticks in housing starts and ongoing efforts to streamline short sales—offer a much-needed reminder that this downturn, too, shall pass.

The improvements we’re seeing might not be dramatic or even permanent just yet, but any step in the right direction is an important one toward restoring confidence among consumers and industry experts.

What’s Ahead
In the near term, 2011 will be better than 2010, but only slightly. In the years beyond, as new phases of the real estate cycle approach, we’ll see healthier trends rather than a return to the abnormal and artificial boom times of the early to mid-2000s.

The market ahead will be driven by hopeful buyers who are regaining their financial footing and building their savings: a generational wave of consumers just reaching their prime home-buying years; immigrants who’ve come to the United States eager to realize their American dream; and investors focusing on long-term wealth rather than short-term gains.

As the damage caused by defaults and foreclosures subsides, more and more homeowners will be managing responsible mortgage terms and affordable payments, and once again be selling homes with equity.

Start Fresh
For real estate professionals, it’s critical to be preparing and reaching out now to buyers and sellers in all situations, and positioning yourself to provide the most comprehensive and expert service you can. Don’t shy away from starting a new, better cycle in your career, with more coaching, new specialties and a renewed purpose.

If we all continue looking ahead, our businesses will be leaner and we’ll be wiser with the understanding that success doesn’t fall into our laps. It takes dedication, and sometimes sacrifices, to achieve goals in real estate—for professionals and consumers.

Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC. For more information, please visit www.remax.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Have you heard about RISMedia’s Real Estate Information Network® (RREIN)? RREIN is an elite network of leading real estate companies dedicated to providing consumers and their agents with leading real estate information, and committed to the belief that Information Share Equals Market Share. Having only launched this past June 2010, the RREIN network is already comprised of 40 leading brokerages, which make up 575 offices, 30,000 agents, 167,000 closings and represents over $41 billion in transactions. How can RREIN help your recruiting efforts and differentiate your company today? For more information, email rrein@rismedia.com.

Copyright© 2011 RISMedia, The Leader in Real Estate Information Systems and Real Estate News. All Rights Reserved. This material may not be republished without permission from RISMedia.

Posted in:General
Posted by Eileen Denhard on March 8th, 2011 5:02 PM

Archives:

Categories:

My Favorite Blogs:

Sites That Link to This Blog: