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Housing Market Improvements: How Will You Adjust?

Wade Corbett

A very wise man named Obi Wan once said: “I feel a great disturbance in the Force.” OK sure, it’s a Star Wars quote, and I’m talking about the housing market and not a metaphysical power, but the overall message still applies! If you pay close attention, you’ll notice the market has begun to shift. Depending on your area, you may be seeing a little change, or you may be seeing a lot of change already. The latest numbers reflect this positive upturn and show that real estate is drastically improving.

If you’ve been in this industry for the last six or seven years, you know that selling real estate takes a certain amount of hustle. When the market is less than stellar, you’ve got to work harder in order to keep business alive. Maybe you’ve had to hold your transactions together with duct tape to prevent them from falling apart. Or maybe you’ve been working 60 hours to do what 40 hours used to accomplish. Either way, kudos to you! But with the market springing back to life, does this mean an end to the “hustle era”?

Two weeks ago, I had the immense pleasure of addressing a class full of aspiring new REALTORS®. If I had given my speech in 2009, this class would have had 25-30 students in attendance. In 2013, the class consisted of 50-70 eager students, all scheduled to take their licensing exam the following week. As I addressed the students, I began to notice that a large majority of these future REALTORS® were very young! Why are these young people hoping to join the real estate sales force? I believe they know about the shift! They know the real estate marketing is going to gather steam, and they want to get in before things really start to pick up.

As the stock market, jobs, and overall economy continue to improve, the real estate market will inevitably follow suit. But is your business model prepared to handle the improving market demands? Do you have your systems in place to take on a larger work load while still trying to hold those difficult transactions together? You may want to consider tweaking the way you run your business to accommodate for the changes that are to come. Foresight is essential to success.

My prediction for the next few years: I firmly believe that new construction will rise at a fast pace over the next several years. How many young people have put off getting married, having children, and buying homes because of the lackluster economy? As the economy improves, more and more of this generation should be purchasing homes and starting families. Currently, there is not enough housing available for Generation Y. As this generation begins to plant their roots, numbers show that new construction must increase to supply their future demand for homes.

Now that I’ve put in my two cents, what do you think? How will the positive changes in the housing market affect the real estate industry?

Wade Corbett is a REALTOR® with RE/MAX Southland Realty in Garner, North Carolina. Connect with him at WadeCorbett.com or facebook.com/WadeCorbettInc.

Comments
  1. Rich

    Wade,
    I think you are right on the money when it comes to new homes being in high demand going forward. The main drag on the economy was Real Estate which is now very healthy, at least in California.
    Good article.
    Rich

  2. How do you perceive this shift affecting the younger generation who, according to the data, millennials are spending far less due to what they witnessed during the recession? The same great migration to go back to school during our modern day Great Depression happens in real estate all the time (the perception is that this business is easy money). When they see that its not as easy ad it looks, let’s see how those numbers shape up.

  3. Thank you Rich! It’s only a matter of time until new home demand is at it’s highest peak.

  4. Dietric, I assume you’re referring to how the shift will affect the younger generation of Realtors(r)? Truthfully, I don’t think that after the recession that real estate is perceived as easy money to anyone. After all, when I tell someone what I do for a living, they grimace and ask how I’m surviving. The real truth is that younger Realtors(r) have a leg up on the older generation of Realtors(r). Why? Well they don’t know any better. What I mean by that is that Generation Y has not been in the business long enough to know what it’s like in a great economy. So if they can work and survive during the recession, they’ll have no problem when the economy comes back in full swing. Ignorance is bliss. Frankly, I’ve found that the younger generation works harder and goes to extra lengths to get things done than older generations. Why? Maybe they have more energy than most. Maybe they know it takes more work to stay ahead right now. I’m not sure.

    All I can say is that I started in this business in 2010 at 20 years old. I’m now 23 years old and I pride myself on working hard, long hours and doing things differently than most of my colleagues. I know that the best time to set the bar for success is during tough times. I also find that I do as much business as those who have been doing this for 30 years. Sometimes, experience isn’t the strongest weapon in the arsenal. Especially when surviving and fighting a recession that no one has any prior experience with.

    I would also like to note that the majority of the younger generation views the recession as an inherited hurdle to that has to be overcome.

  5. Cant not agree with you more. I just wish that some of the buyers got of the fence and started doing something about getting themselfs qualified. Even with the economy improving most still do not have the down money needed and weak credit scores.

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