Now that 2008 is winding down and 2009 is on the horizon, are we getting close? Close to what? To a "return to normal."
It really depends on what you view as "normal." If you mean what we experienced just a few years ago, then I hope not. I don't want to go back there.
If you're talking about a time when real estate is stable and somewhat predictable, then I'm for that and I don't see it as being that far off.
What is normal anyway? It’s an average. It means things have been better and things have been worse. In the past 5 years we've seen both extremes.
Remember when people would trade their homes every few years? Now, they are prepared to to stay in them much longer. Aging-in-place is a big factor.
Regardless, a "normal" real estate market to me is when people can put their homes on the market, sell them in 2-3 months, get close to what they’re asking, not get attacked and beat up over a bunch of concessions, find another home that is within their affordability range, get financing at reasonable terms, move into their new home (not necessarily brand new), and enjoy it.
For new homes, it means that builders can create a product for which there is reasonable demand at an acceptable absortion rate - and not have to give them away because they are overpriced or overbuilt.
For me, I don’t need homes selling before the dirt settles on the yard sign or sellers making back all of the “lost” equity they feel they’re entitled to.
Just something nice and steady that we can get our arms around. That'll do for now.
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For more information on my coaching and educational programs and services, sales tips, insights, or strategies, visit my website stevehoffacker.com or my other blog homesalesinsights.com. © Steve Hoffacker, 2008. All Rights Reserved.
Steve, hard to tell how often we hit normal in the ups and downs in the cycles but all your words strike a chord with me for some reasonable level of what the business "could" be.
Steve,
I don't know what is normal, to me real estate has always been feast or famine. I am looking forward to a good 2009.
Boy do I feel you on this one! I, too, want to see us get back to a place of normalcy. I also think we are not too far off from that time. But until then, we need to stay busy and keep closing those transactions. We need to continue to do business as usual in order to ACTUALLY get back to business as usual.
Thanks for sharing, Nicole Weidauer
The Egerer & Weidauer Team, Keller Williams Realty North Seattle
Things will end up being quite different once things do get back to the 'new normal.'
Besides serving my clients, I've been working every day polishing up my skills and knowledge to be real ready for the market when it does return to "normal". It's funny, though, because that is one of the things I love most about Real Estate...each day, client and transaction is different....so there is really no "normal" anyhow!
Seems pretty normal to me. I still see that 90% of the business is being captured by 10% of the real estate professionals. I still see that sales success starts with a plan and then working the plan. I still see that business models change with the market. I still have to get up in the morning with boots on the ground. I don't want to make light of those struggling out there - but a good work ethic and a vision seem to succeed in good and bad markets.
Steve, everything is relative as it relates to our definitions of normal. This is not the place to write all the bad news regarding comebacks. We will take that offline sometime if youi are interested. Let me just say this....keep your arms and legs in the ride and hang on tight!
Bo
Steve, It is all up to the individual as far is what is *normal*... I'm looking forward to a very productive 2009.. and the same for everyone else here. I'm keep my glass half full.
Gary,
Normal is hard to quantify. It's like the days when the temperature is above normal or below it. Might feel good or not. Would be nice to have a little more stability and predictability. :)
Steve
Mary,
It might depend on your market, and there are certainly supply and demand issues making it a buyers or sellers market, but I think markets demonstrate a certain amount of dependability - days on the market, percentage of asking price, etc.. :)
Steve
Nicole,
That was very well, and very cleverly, said. Thanks for your support and comments. :)
Steve
I would consider the market between about 1992-2000 as being 'normal' - that must be tough for a newbie to comprehend, but the highs and the lows of the last eight years just don't seem 'normal' to me.
Susie,
Actually, I'm counting on that. People in the business that want to be here and doing the things that need to be done (of course not even all of them will even though might act like it). :)
Steve
Debra,
You're doing fine. Keep doing. One of the things about the new normal is that customer expectations will be more sane and realistic. :)
Steve
Ryan,
What you're doing is not normal. If is way above, but that's fine. I'm speaking of normal more in the sense of waht market conditions are. :)
Steve
Bo,
I'm not picturing the wild ride you describe. BTW, thanks for the canoe lesson. :)
Steve
Valerie,
We're all top performers or we wouldn't be interacting with each other and sharing our stories of how well we're doing. I'm primarily talking about a marketplace that is a little easier to operate in and where people who do get into our business will understand that's it's quite honorable and that it demands hard work. :)
Steve
Lisa,
I definitely agree - maybe pushing it to '01 or '02 but that's it. Thanks. :)
Steve
Steve... That would be good.. Thank you for straightening me out and putting me on the right track.
Valerie,
Just keep setting the pace and don't let detractors get in your way. :)
Steve
Hi Steve
Not only are we returning to a normal market but also one of business values.
Good luck and success.
Lou Ludwig
Lou,
I know you follow the markets closely, and it's great to get your opinion., Thanks. :)
Steve
Steve - I like that. Nice and steady would work well for me, too! :)
Debi,
I think that would work well for a lot of us. :)
Steve
Hi Steve...I would think a more level playing field for both sides would be appreciated by everyone in a real estate transaction.
Even the buyers today are so afraid that they are buying "too soon" no matter how low the price is.
When it was a red hot sellers' market the sellers worried that they were selling below what they really should be getting.
I like your take on this topic.
Kate
Kate,
Thank you. Let's all get behind a more stable 2009. :)
Steve
What is normal to some may not be for others - Great post - thanks!
Steve, that is another silver lining!
Norma,
All markets are different. What sells in a month in one area may typically take 3 months in another, but a stabilty and normalcy is what we are looking for. :)
Steve
Debra,
Thank you. Just remain strong and optimistic. It's getting beter and better each day. :)
Steve