I was recently flying home to Orlando when the flight attendant introduced herself to me. “What do you do for a living?” she asked. “I own a technology company. We provide web-based software to the real estate industry through title agents” was my response. Her shoulders sagged as she said, “Yeah, I used to be in real estate but I quit…there just isn’t any business out there anymore.” “When did you leave?” I asked.
Last week the media was all over the housing numbers. Reuters reported (as did most news outlets) “…prolonged housing weakness” and the news spoke of indicators and trends “…dashing hopes for a quick turnaround.”
(Reuters) – Sales of new U.S. single-family homes tumbled to their lowest level in eight months in March, dashing hopes for a quick turnaround for a sector that fell into a soft patch last summer.
The Commerce Department said on Wednesday sales dropped 14.5 percent to a seasonally adjusted annual rate of 384,000 units. It was the second consecutive monthly decline and the biggest since July, which was also the last time sales were so slow.
It’s probably time for the rest of us to quit too.
I read an interesting article somewhere a couple of years ago. A survey of economic news headlines showed the majority of them were negative in rising markets and positive in falling markets. Let me ask you, what does the media really know about your business–the buying, selling and closing of homes? Someone should check the first quarter numbers, year over year, first.
Just about anywhere you go (even on airplanes) there is no a shortage of negative talk. There are always those who are ready to preach the “end is near” because (1) ten year ARM’s from 2005 are re-setting next year, (2) Medicare is bankrupt, (3) China is graduating more engineers than we are, or (4) an asteroid the size of Texas just missed us and it’s only a matter of time.
Did you hear the story about the Wall Street investment banker who made a billion dollars in just about a day when the market pulled back in 2006? It is all a matter of how you look at what’s going on around you and how you take action.
Look at the numbers and decide for yourself. If you compare February, 2014 to February, 2009 the story changes a lot…
US Home Prices Up 12.9% From A Year Ago…
I don’t know about you but a steady 2.6% increase in value every year on my home sounds like a pretty stable and healthy market.
How can demand decrease while asset value increases? Answer: it can’t.
No matter what the headlines show, this is the beginning of a purchase market. It may not come in smooth predictable increases so you’ll need to ready, innovative and flexible.
A lot has changed in nine years. Don’t apply old strategies to today’s market or our next conversation may be held at 30,000 feet.