The residential real estate business is suffering.
After years of boom times the party has ended. Sales are down. especially in the middle-price market.
The big threat today to residential real estate sales is the "rational consumer."
For decades the business of selling homes has promoted and won the "emotional sales" approach.
The potential home buying consumer knowing many others have been badly burned and financially harmed in recent years no longer buy into the emotional pitches and mindless blather of the past.
With the Great Recession spreading consumers are hyper-concerned about their individual financial status and well being.
Potential home buyers and sellers have become educated to the true potential painful consequences of irrational and emotional buying, resulting in the entire home-selling industry and business being in deep finaicial trouble.
Many real estate agents are fleeing the business as markets stagnate and go bone-dry. Brokerage shops are facing continued higher and higher expenses with fewer and fewer commission dollars. It's called The Big Squeeze.
With growing higher unemployment, contagious job-insecurity, tougher and tougher bank lending policies and credit overview, creeping inflation, many family are staying put, and real estate is no longer as attractive as it once was.
Even real estate window-shopping, or going to open houses, is becoming a thing of the past.
Consumers today know that the home- selling industry played a major role in the recent real estate boom and big bust.
The day of the rational real estate consumer, is now now here , alive, well and very cynical and skeptical.
Bill McInerney
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