Recession, the Housing Industry and Your Real Estate Broker
The great economic depression began in the late 2006 when housing market crashed and homeowners began defaulting on their loans. The United States’ toughest economic crisis since 1930 has greatly affected the housing industry and the people that make a living out of it— agents, real estate brokers to name a few.
Home sellers and buyers have entrusted their properties and funds in the hands of real estate brokers knowing that with their skills and knowledge, they will achieve their goal.
Before the great depression stormed the economy, buying and selling properties were done in a breeze. With great mortgage deals available, many risked on purchasing or building their dream home. Buyers used to overbid and sellers were happy with their control of the transactions. Commission was good for real estate brokers.
But when the market started to crumble, real estate brokers had to work harder just to close a deal. They usually get all the blame when problems arise, even if the situation was out of their control. And if a deal dies, they have to get back on track and find another deal to close. They have to race against time, or else there is nothing left for them.
The market has changed a lot that the real estate broker must do more work to cope up.
Lenders are tighter in giving out loans. Consumer confidence is very low. The HVVC legislation has even slowed down the appraisal process. Numerous homes are in foreclosure.
The recession also affected consumer confidence. Out of its other effects, this may be the most damaging. Transactions have become so stressful, and even impossible, that buyers and sellers choose to let go. Even real estate brokers want out.
Foreclosure and short sales have dominated the market. These sales drag down median home prices, and makes the transactions go slow. But real estate brokers are currently seeing some movement in the lower end of the market. Home prices in short sale dominated areas are stabilizing, meaning it is now close to rebound.
“Real” real estate brokers must be optimistic and see the signs of market rebound and improvement of consumer confidence. The government is doing their best to aid in brining back the economy and housing industry back to life. A little more patience, and more extra effort, the positive change will eventually come.
