With the possibility of a recession looming, the leadership team at Tru Realty is starting to look at what the future may hold for our clients and our agents.
Though an economic downturn hasn’t begun just yet, many experts believe it’s only a matter of time. According to a poll from the Wall Street Journal, 25% of economists believe a recession will happen in the next year while more than half think it will occur in late 2020. With 2020 being an election year I am hopeful that the Fed will hold off raising interest rates.
In a recession, buyers and the Realtors who represent them gain the upper hand due to stagnant home prices and an increase in inventory. This could bring about the potential for new buyers who have been holding off searching for that perfect house to find the gem they’ve always wanted. However, sellers will not be seeing the same kind of equity in a recession so if they intend to sell they should probably do it in the next year or so.
The good news is that the forthcoming economic downturn will not be inextricably tied to real estate.
It will be more associated with corporate debt and the potential for significant defaults. This tells me that the impact on the home seller will not be nearly as bad as the tumble they experienced in 2008.
Historically, desirable areas as well remodeled homes will see the least amount of impact. Recession-proof housing will be homes that have been fully remodeled, in top school districts, and have strong walk scores to various restaurants or shopping conveniences.
Another factor to consider will be how the millennial generation responds.
Will a recession that creates more affordable housing trigger more buying from an age group that’s been relatively moderate in their pursuit of home ownership? I predict it will.
Tru Realty agents are constantly preparing for any economic eventuality by honing both their skills and their knowledge. We train our agents to serve buyers, sellers, investors, and even how to execute short sales should foreclosures begin to spike again. By looking ahead, we’re able to prepare listing agents into buyer representation so any downturn has a minimal effect on their income.
As a broker agent, it is my job to see beyond today and prepare our agents for tomorrow.
This is how we deliver an extraordinary real estate experience to all of our clients while also providing benefits to our valued agents that represent Tru Realty in the marketplace.
Perhaps the most repeated quote in all of business is, “the only constant is change.” This is especially pertinent to real estate. At Tru Realty we are committed to excellence through education and preparation. This is what’s made us a leading brokerage in Arizona’s competitive real estate industry and this is what will keep us there.
If you’re looking for a forward-thinking brokerage that can provide you an emergent, creative, and positive environment to thrive in your real estate career, give me a call or email me at firstname.lastname@example.org.
Sarah C. Richardson is one of the preeminent leaders of residential real estate in Arizona. As the CEO and founder of Tru Realty, she is responsible for both the daily operations and oversight of the multiple growth strategies that the brokerage carries out. Sarah launched Tru Realty in 2010 as a way to serve a marketplace that was seeing a shift from auction centric fix/flips to an MLS flow. She is now rethinking the way her brokerage uses technology to better serve clients and agents alike.