Real Estate Agents Lead Recovery

Real Estate Agents are a silent force that fights for freedom.  Real Estate Agents are the most independent working people on earth with more opportunity to earn an exceptional income despite limited formal education or professional background.  (Please do not confuse formal education with intelligence.  Mark Twain’s expression is wholly embraced by many of the most successful Real Estate Agents, “I never let my schooling interfere with my education.”)

The ranks of Real Estate Agents are filling with more and more young people who are smart, educated, and committed to a successful career in Real Estate.  The first generations of Real Estate Agents that left or graduated from college to sell Real Estate are transforming the profession.  It is tempting to think that it is their comfort and embracing of technology that is their strength.  That is only one equal part.  As strong as their facility with technology is, their commitment to the business as a career decision and their continuously seeking better business practices.

The youth and their commitment are not the strongest force leading the economic recovery.  The experienced professionals who have succeeded through recessions in the 90’s, the 80’s, and even the 70’s (still some of them around), these veterans of previous difficult markets realize that the downturn is temporary and on the other side is a strong, healthy market. 

In August of 2008 an article of mine (We’ve Hit Bottom… Hooray!) was widely published in which I wrote, “In the hardest hit markets that experienced the greatest price declines … may take another twelve months for enough of the excess inventory to be absorbed for those markets to experience growing appreciation.  On the other hand a rapidly growing number of buyers are coming back into the market anticipating that the bottom may have arrived.  These buyers are getting great values while they are absorbing the inventory.  These buyers are actually creating the future value increases that they perceive. 

Let’s be realistic.  Things don’t turn completely around in one year.  We are not going to immediately, see the kind of demand and seller’s market that create double-digit appreciation this year (2008).  We will see the end of price depreciation and mild growing appreciation in market after market.

As one market after another recovers there will be increasing appreciation.  In your market sometime between 2009 and 2011 you will see another seller’s market.  In the hotter markets you will again see double-digit appreciation.”

The above article was written before the foreclosure bombshell and the banking crisis.  It is amazing to me that despite the tremendous numbers of foreclosures, the Ponzi scheme victims, and the extent of the banking crises have not delayed the residential Real Estate recovery.  The time frame prediction of the above August 2008 article is still on track. 

It is obvious that residential Real Estate leads the economy. Bad residential lending took this economy down. It is the active Real Estate market this spring in most markets that will bring it back.

You will hear the stimulus package and all kinds of other reasons for the end of the recession. That is political spin.  Notice that the health of the residential Real Estate market precedes and leads the recovery.

How can that be?  Because each time a house sells, tens of thousands of dollars go directly into the local marketplace for both closing costs and home improvement.  The fact that this happens in every community across the country makes it obvious that residential Real Estate has the strongest and most immediate influence on the economy.

Thank goodness that the NAR lobby was strong enough to get the residential benefits of the stimulus package to the Real Estate market immediately. 

Young and old, rookies and the most experienced, you as Real Estate Agents are doing more for recovery by honestly and optimistically matching Sellers and Buyers; and making this a strong spring for yourselves.  It is pretty cool, (a reflection of my age) that you can do something so good for you and your family and it is the best possible thing you could do for the recovery, the economy and the country. 

Rich Levin is a National Real Estate Authority with over 30 years experience; the last 15 dedicated to coaching and speaking.  His specialty is in raising Agent Production while improving quality of life.  He has spoken in 38 States at events from small offices to the NAR convention. Join our Success Community to receive more articles, tips and information. Contact us at 585-244-2700 or visit  

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