Wednesday, July 20, 2005

Real Estate Agents Now Preparing for Downturn

This just in from Inman Real Estate News. Interesting how real estate agents are suddenly changing their stories. I guess we will be seeing a lot of RE agents out of work. And every RE agent that I know owns more than one house on speculation. That should put more pressure on the housing market:
"As the high-flying housing boom loses feathers in some formerly hot markets, real estate consultants say it is time for brokers to focus on those survival skills that will carry them through a market shift."

"Many agents, brokers and companies have joined the real estate bandwagon at a time of record home sales and home-price appreciation, and historically low mortgage interest rates. The housing boom has prospered for more than a decade in some markets, and many real estate professionals have never known a "normal" market or a cyclical downturn."

""Companies are tightening the reigns. I think people realize this is a cyclical market. It may be a longer cycle than normal. Nobody is that intoxicated to (think) that this party is going on forever. They do not want to make these changes when it happens because it's almost too late," he said."

"Jon Cheplak, a former real estate executive for Better Homes and Gardens of Las Vegas who now serves as a real estate consultant for The Real Estate Recruiters, said he expects that some agents will leave the real estate industry and some companies won't survive the transition as the market turns. "Some of the people that are making it today won't make it in the market-shift. You will see many agents getting out of the business," he said."

"Cheplak said brokers are definitely aware that some markets are turning. A couple of months ago a real estate professional told him that the Orlando, Fla., market is showing some signs of slowing, he said, though by outward appearances that market is still hot. "Don't spend so much time focused on everything that's wonderful. A broker looks for what's not right (too)," he said. "Some people say that numbers don't lie -- they do if you look at them the wrong way.""

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