Future of the Real Estate Industry

I was recently contacted by Inman News with questions regarding how I felt about the future of the Real Estate Industry.  Answers will be featured on inmannews.com, but I thought I’d share them here with you as well.

Q.  Imagine how the real estate industry will be different when we recover from the current downturn.

A.  The brokerage segment of the industry will be lean and mean.  The downturn will push many brokers out of the business, with only the innovative and dedicated remaining.  The dinosaurs will persist until they fade away due to attrition.  Technology will be the vehicle that brokers will use to find and communicate with buyers and sellers.  This is and always will be a relationship business., but the changes in the web have just begun and I wouldn’t even venture a guess as to what the business will look like in 5 years.  Those that embrace the new paradigm of constant change and evolution will prosper, while those who do not will wither on the vine.

Q.  How will the business model or business practices of the title, brokerage or lending industries change in the future?

A.  They will continue to evolve at whatever breakneck speed the tech gurus can throw at us (brokers).  The tools we have will continue to be refined and then combined in any myriad of ways with new tools.  The sky is the limit here.

Q.  Will the industry be regulated differently in the future?  How so?

A.  I do believe that regulation will increase.  It is my hope that any changes to how we are regulated will be made with foresight and due diligence.  I will say as a lais-sez faire kind of guy, I have overall been happy with how North & South Carolina have adjusted to how they regulate as the world changes.

Q.  What must the industry do now to prepare for this new direction?

A.  Get involved so that we can work with the regulating bodies to come up with solutions that are both fair and practical.

Q.  What technology trends will change the industry in the future?

A.  If I knew that answer I would be in Las Vegas predicting when 17 black would pop up on the roulette wheel.  In all seriousness, the web is in it’s infancy and we have no idea where or how it will change.

Q.  What skills will the real estate agent of the future require?

A.  This answer ties to the last question as well.  We must constantly be on the cutting edge of what is going on.  This is a never-ending job and you can never learn too much.  The agent of the future must be willing to reinvent their business model frequently to keep up.

Q.  How will real estate advertising dollars be spent in the future? How will real estate marketing be different?

A.  First question – the internet.  Second question – advertising will have to be interactive and responsive to what the consumer wants.  It will need to have value for them (the public) to take a look, if not, there are other choices out there.  The advertising will be integrated within other web media.

Q.  Will sales activity in your local housing market contract or expand in 2009? Will national sales activity contract of expand?

A.  I expect our sales volume to expand slightly in 2009.  We have been somewhat isolated from the markets in the rest of the nation. With prices settling down across the country, I see activity starting to pick up.

Q.  What will drive the expansion or contraction?

A.  The correction of real estate values nationwide along with our continued progress through the sub-prime inventory would help with a mild expansion.  If the overall US economy remains unstable, real estate around the country will suffer as people tend to hold on to their money when uncertain.  Local conditions in Charlotte should also insulate us from the bulk of a downturn.

Q.  Will local home prices decrease, increase or remain stable in 2009? 2010? Will national home prices fall, rise or remain flat in 2009? In 2010?

A. Both local and national home prices will stabilize. Prices will not start going up until the current inventory has been gone through.