According the Economists The Great Recession Ended in 2009. Realtors have been greatly affected by the Housing Market Downturn. 57 months of continuous drops in the prices of Homes has lead to the fall of the realtor?s previous lifestyle.
Before 2006, and what economists call start of our ?Great Recession?. Realtors were making millions of dollars. 6 figure incomes were common and easily obtained by agents because of the numerous prospective homebuyers.
The Great Recession
The housing market collapsed, leaving homeowners with expensive homes nobody could afford. People were stuck with high loan balances which far exceeded the worth of the home. Foreclosures became very common as prices of houses continued to fall.
Realtor Woe?s
Real Estate agencies have been hit hard by the recession. What was once a market of eager buyers has fallen to a market of thousands of bank owned foreclosure homes. Prospective buyers today that do qualify are getting great deals on homes, but realtors are taking the brunt of the recession because they are receiving lower commissions from the lower costs of homes. Not only that, but realtors have to work a lot harder to deal with all the paperwork that the banks required to close the deal. Even after completing all the required paperwork, some prospective buyers will drop out of the deal if they feel it is taking too long to process. It is not uncommon for Agencies to have stacks of completed paperwork on deals that have taken too long, thus time wasted with no results.
Real Estate Agent Today
In 2006 before the Recession, there was 1 agent for every 52 people in California, the market was booming. The number of agents Increased 57 percent from 2001 to 2006. As of fall 2010 there were 327,000 licensed agents in California registered with the National Association of Realtors.Since 2006, This amounts to almost 200,000 less agents in the market. Agents could not make enough money to support themselves or family.
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Foreclosures
?The Wall Street Journal reports that there are over 7 million foreclosures that have been held back by lenders and banks? These are homes that the banks and lenders are holding on to assets that receive no return. Lenders are at least hoping that these delinquent borrowers will at least maintain the care of the home. If the housing market are flooded with these millions of homes, then, as economists would put it, supply would far exceed demand and prices would fall further. Still Today over 10% of all residential in the country today is vacant. Millions of homes vacant with a poor economy where nobody can even afford to buy them.
Agents Doing ?What Is Necessary To Survive?
Agents today have to look for other sources of income, some are taking part-time jobs or even changing careers. In Reality 10% of the Real Estate agents do 90% of the business, which leaves the rest to figure out how to get people in the door so they can list or sell a property. Agents websites will promote their expertise, listing and expertise for those interested in choosing them. Competition is fierce, so please verify the accuracy of the information on the website. Word of Mouth is still the best way to find a qualified, experienced, honest agent to buy or sell from. Check with friends and family, relationship marketing is very effective in this industry.
?Andres Anderson?lives and works in Cartagena Colombia. Working as a realtor in this city, Inmobiliaria Cartagena? is dedicated to providing its clients with honest and experienced advice when they are looking to purchase in the Cartagena de Indias market . If you are looking for lands (proyectos inmobiliarios en Cartagena Colombia?) or any other property ( proyectos inmobiliarios?en Cartagena Colombia?) they can help you in your search through the next link:Inmobiliaria Cartagena de Indias Colombia?
Source: http://www.etf2005.com/general-news/realtors-is-your-business-recession-proof
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