THE REAL SKINNY ON THE REAL ESTATE MARKET

Hey Friends,
I know it's been a long time since I blogged, but frankly I've been busy trying to sort out what's been going on in this crazy market.

It's confusing. One day the paper says the recession is over and the housing market is rebounding. The next day I would get the statistics from the Fed's and they said just the opposite.

I had formulated my own opinions, but I am always double checking myself.

So today, here came an article from our founder; Dave Liniger. Dave has one of the best real estate minds I know, so I think it's valuable for you to see what he sees.

His article is as follows. Let me know your thoughts.



Liniger in Chicago: 'Demand Will Come'

CHICAGO - Demand built on demographics and population – rather than questionable lending policies – will spark the next wave of strong home sales in the U.S., Dave Liniger told nearly 700 Affiliates at the 2009 RE/MAX Summer Conference for Broker/Owners and Managers on Monday.
The confluence of two massive population groups – 80 million Baby Boomers born from 1946-1964 and 74 million Millennials born from 1980-1995 – will fuel a huge increase in transactions from 2012 onward, the RE/MAX International Chairman and Co-Founder said at the conference's Opening General Session. Immigration and minority household trends will add to the upturn, he noted.
As the Millennials, who are 15-29 now, reach their prime homebuying years – the average first-time buyer is 33, though that number appears to be trending downward – the Baby Boomers will be selling and downsizing. The rise in demand will drive the market upward, Liniger said.
"Very good years are coming," he said, adding that RE/MAX International – through technology, training, social media and other initiatives – will help Broker/Owners and Associates connect with these consumers.
Being successful todayFor the time being, though, local markets will stay as they are, Liniger said. In fact, unemployment and a second wave of foreclosures in 2010 and 2011 are likely to make things worse before they get better. He urged Broker/Owners to help their Sales Associates close transactions through distressed properties, REOs, first-time homebuyers and investors. His constant theme: Affiliates cannot sit back and wait for a quick turnaround – because it's not coming.
"I'm not negative; I'm realistic," he said. "If you're not realistic, you can't make the adjustments you need to make in order to survive and prosper."
Liniger said RE/MAX leaders have met many times with key lenders and government officials to push for foreclosure solutions and a standardized and streamlined short-sale process.
He also called the Certified Distressed Property Expert (CDPE) course the best training he's ever encountered. More than 6,000 RE/MAX Associates have earned the designation, he said, and others should consider it.
"Short sales are the key for the next 18-24 months. Our people must be trained to handle them," he said, noting that true recovery simply isn't possible until the foreclosure problem is solved.