So, where are we now in the economic scheme of things?Very, very close to the 1973-75 recession low. This( 2008-2009) recession, according to some published reports, is now close to surpassing the 1973-1975 downturn according to the Coincident Indicators, based on government data and complied monthly by the Conference Board a private organization.
But this recession could prove to be worse for back in those days we didn't have "globalization."
With the global and national financial industry mess: with the bankruptcy of Chrysler, a major auto maker: the on-going, two mini-wars (with mega-budgets): the recent hard-times facing the entire retail industry: and the negative economic impact and cost of fighting the the swine flu potential epidemic I see a very long, lackadaisical and ultra-slow summer.
All we can do is to stay the course and weather this storm to the very best of our individual and collective abilities.
What about real estate? During the nasty and mean 1973-1975 recession, we in the brokerage business back then had a saying " All we can do is to wait and see who is left standing."
Today we all better brace ourselves for a major downsizing in the ranks and numbers of brands, brokers, and agents.
Both sides of the aisle, commercial and residential, will be hit hard without a major miracle which does not look probable. Many private and public real estate brokerage firms, national, regional are now reporting serious financial difficulties.
Too many brands, too many brokers and too many agents sharing too few actual sales.
I'm of the opinion that we need to prepare ourselves for many more tough laws, rules and regulations, in addition to the Home Valuation Code of Conduct which went into law on May 1, 2009.
I don't think Washington DC will be as complacent in 2009 as it was after the S&L mess of the '80's.
So all we can do is to wait and see who is left standing!
Bill McInerney
BUYING OR SELLING? CALL BILL Mc INERNEY 617 816 3933
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