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?