Real Estate and the Economy
With the fallout of sub prime mortgages we are seeing lenders tighten their lending standards and as a result there are fewer house sales. One real estate agent told me that as a result their agents aren’t able to produce as much as they used to in previous months. I told him that the real estate market is cyclical and it will rebound eventually.
This doesn’t make agents feel any better right now because they their family to support. They are going to have to be even more creative and work longer hours just to keep their standard of living.
The real estate market is taking a hit right now and it’s filtering through the rest of the economy. Real estate agents are just one area that being effective immediately and it will trickle into other areas of the economy as well. Since the Fed didn’t cut rates yesterday, it may keep the economy down for quite some time.
I look forward to seeing the bottom of the market, and the feedback from real estate agents will let me know when that happens. Once it does happen, real estate agents and other effected by the sub prime mortgage fallout should start to see their business prosper.
