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What will the shift do to real estate consumers’ psychology?

in Charlottesville General Real Estate Regional on

The question that those that market real estate have to answer is this: will people treat a bounce in real estate the way that they think about a drop in the stock market (a chance to profit) or will it lead to a long-term reevaluation of what it means to own a house?My prediction – absolutely….  What we are witnessing is the return to a less transient real estate market (even though Charlottesville has traditionally been a bit more transient due to the University of Virginia), where buying and selling a home requires more due diligence and careful consideration than it has for the past seven years.  Those who think that interest rates are high when a 30-year-fixed-rate mortgage can be had for under 7% – need to see things in a little bit of historical context.But is it a marketing problem?…  There is frequently more to the story than can be presented in one thousand words or less (that’s why we have blogs).Understanding that housing has, outside of the past 5-7 years, been regarded as a long-term investment is fundamental to the strength of the housing market.The TJPDC says that (PDF) the Charlottesville region can expect housing demand to increase 11% from 2010 to 2020 (p.62 of the report).The demand will be there, but the “quick buck” will be harder to find.

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A shift to Buyer’s Agents

in General Real Estate Public Perception on

I wish I could reprint this entire article (subscription required), but don’t want to run afoul of any applicable copyright laws.The housing market is changing faster than Kate Moss’ career after the cocaine photo leak….  We expect to see agents lining up for their copy of a new book on how to be nice to buyers, since they’ve spent the last 10 years treating them like cattle in a gold mine….  I hope that as the market shifts, the public and home buyers and sellers will turn to the true professionals and remember those who treated them as “cattle.”From another Inman article citing the top 10 signs of a changing market – 9….  If the market slows, real estate agents will be negotiating fewer deals, and for those who were barely making it in a hot market, a slow market means it’s time to look for a new profession.Good.

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Market shift a good thing

in General Real Estate on

In general, what I’ve witnessed is that brokers are taking a hard and strong look at expenses built in a great market and looking at a normal market — and trying to pair those two things up,” said Kenneth L. Jenny, managing director and CEO for tranCen, a company that offers business advice to residential real estate companies.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…. You will see many agents getting out of the business,” he said.As many of my readers know, I think that a slight shift in the market will be a good thing. Home prices may become a bit more affordable/tolerable and the wheat will be separated from the chaff, with respect to the sheer volume of Realtors.

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