Real Estate sales down this year

I hate to be the bearer of bad news but it seems that the great real estate market of the last few years may be coming to an end this year as the bubble of the real estate market finally bursts and opportunistic buying ends. As we all know there are some people that just have some business fall in their laps for others it is much more difficult.

all of the strategies that I talk about on this blog will be effective for years to come and I hope that you do keep up with these online strategies as the article below talks about a real dropping off in the number of Realtors across the country.

“Reductions in the mortgage banking industry are somewhat due to the end of the refinancing boom,” said Brian Carey, an economist with Economy.com, “but it’s probably even more due to the slowdown in the housing market over the last couple months in terms of home sales and purchase mortgage applications.”

According to the Mortgage Bankers Association, there are 500,000 people employed in the real estate finance industry. “We’re looking probably at a 5 to 10 percent decline in home sales this year compared to 2005,” Carey said. “That would suggest to me a similar decline in employment. You’re probably talking 25,000 to 50,000 jobs lost in the real estate finance industry in 2006.”

Because real estate brokerages are operated differently, that part of the real estate industry will be affected differently, Carey predicted.
“The real estate occupations tend to be more flexible and move with the economy because everyone knows they are cyclical,” said Dr. Delores Conway, director of the Casden Real Estate Economics Forecasting Project at the University of Southern California Lusk Center for Real Estate.

“A friend of mine’s husband is a Realtor and he is going into auto sales,” said Conway.

According to the National Association of Realtors, there are 1.2 million Realtors in the United States.

“Let’s say there’s only room for half the Realtors. It could be 500,000, it could be 700,000,” Conway said. “In the margin you would have people moving out of the industry. I would be surprised if it was more than 30 or 40 percent.”

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