Relationship Management – Talking Points for the New Year
Many of us in the real estate industry believe that the economy is destined to remain flat until the real estate and housing market recover. Virtually every industry has been impacted by the poor economy. Our conclusion is that once real estate and construction turns around, the economy will also turn around improving conditions for almost every business.
The real estate recovery will actually impact people on three different levels:
- Personal Wealth – Most people own real estate. Values nationwide are off as much as 50% in most real estate markets from their highs 6 years ago. Many experts predict that improving market conditions will lead to a significant recovery in real estate prices. As real estate prices increase, so does the net-worth of homeowners. When homeowners feel more secure, they spend more and the economy gets better. Rapid appreciation = rapid recovery.
- Impact on Business – The above scenario also applies for obvious reasons to business productivity. During the past 3 or 4 years there has been tremendous pressure for people and businesses not to spend money and not take risks. Increased signs of recovery will cause a paradigm shift motivating big business and small business alike to expand and take risk. Once again, an improving real estate market = an improving economy.
- Impact on Unemployment – Construction jobs also drive the economy. With very little new construction during the past 4 to 5 years, construction jobs were nearly non-existent. Of the 6 million jobs lost in the economic down turn, 2.4 million of the those jobs were in construction. Construction employment is steadily increasing. Putting construction trades back to work will put a significant dent in the unemployment rate. More people working = more people spending = economic recovery.
Given the tremendous impact that real estate will have on a return to normal economic conditions, tracking real estate market data should be a high priority for everyone in 2012. We take this responsibility very seriously and plan on providing the best information available on market data and trends to our buyers, sellers, and every homeowner in our market. We will be sharing this information with our clients on a regular basis and look forward to helping you make the best real estate and business decision in 2012.