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2010-10-13 15:30:22

"Hit the Bricks -- Baby"

We’ll it’s time to sit back and have a cold one because the Real Estate industry just threw you another curve ball.
 
If you weren’t an alcoholic when you entered the Real Estate industry, I’m sure you are by now, or you’re seriously considering becoming one.

I’ve been around this industry for 40 years. I’ve done it all, from being the MVP rookie, to the top Realtor® in a state to being a top manager to building and selling large successful Real Estate Brokerages. But yet the past four years have even tested me.
 
Now once again we are faced with an ever changing environment. If you have a bunch of foreclosures under contract and were counting on those commissions for Christmas, you better decide to have a regift Christmas this year because your income just got flushed down the toilet.

By the way, a regift Christmas is fun. Our large family decided to do it last year because so many of them were hurting and it was the best and most fun Christmas we’ve had in years. Everyone got creative and there were lots of old pictures framed and gifts from years past that one family member didn’t need but another family member did.
 
But, back to the subject at hand. With the moratorium that was just implemented across the country, Realtors® are going to be fighting over the few listings out there that aren’t foreclosures.

That means we are back in a 2005 era of Real Estate -- few listings available for sale with many Realtors® fighting over them. Sellers will catch on relatively shortly and will learn that they can raise their price.

So it’s time to get back to the basics for all the Realtors® out there. Start pounding those doors again looking for quality listings. Start working the expires again. Get your mail pieces and your social media set up for listings. The listing Realtor® is about to become the rich Realtor® again.

If this moratorium last more than three months, we will see housing prices in the more desirable areas go up by 5% or more in just the next six months. The inventory problem that I have been discussing for months has just hit, and it’s hitting the industry like an atomic bomb.

In most areas we just lost 50% to 60% of our inventory for sale.

If I were a Realtor® out there trying to make a living at this time, I wouldn’t bother with another short sale. I would be building a large inventory while the rest of the Realtors® moan and cry about the sales that have now been placed in Purgatory.

Part of me is scared about the near future and the lack of closings but part of me believes that this was the red hot chili pepper that will make the eyes water again with anticipation. Would anyone like to place a bet on what happens over the next six months if this moratorium continues?

There are still almost five (5) million sales a year closing and now we have NO inventory.
 
Bar the door Katie, here it comes!!!!!!

 


James A. Crumbaugh III is CEO of Allison James Estates and Homes, an Internet Based Real Estate Brokerage operating in 14 states. You may reach Mr. Crumbaugh at jcrumbaugh@allisonjames.net

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