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Published by the CIPS Network of the National Association of REALTORS®
First Quarter 2007
2007: A Year of Success!
By Jim P. Harris, CIPS, ABR, CRB, CRS
In many U.S. markets (as well as globally), REALTORS® saw 2006 come to a close on a slightly less positive note than in the preceding few years. In the U.S., the real estate boom of 2002-2005 was unprecedented, with many areas enjoying an average price increase of 31 percent. Prices in a few red-hot markets—like Las Vegas and Miami—nearly doubled. By the end of 2006, however, although most markets had seen some softening, only a few experienced price corrections in excess of 10 percent—not the big bubble burst predicted by doomsayers.
Local Markets Correcting
Instead, markets experienced what many economists felt were needed corrections, resulting in a drop in home sales and an end to double-digit price increases. In a recent interview, NAR Chief Economist David Lereah1 forecasted that “the worst may be over” and that “as we enter a new year, further contraction in the housing industry may be limited.”
This is certainly true in my market region—the Seattle-Tacoma-Bellevue area of Washington State—where the third quarter 2006 median home price was up 14.6 percent from the same period in 2005, but I recognize this is not the case everywhere. Markets that saw huge price increases over the past few years may still have several more months of continued softness ahead. And, although I have no statistical data to back me up, I think it’s logical to surmise that many of these same markets are those that attract global investors and second-home buyers.
Success in Global Markets
While international specialists feel the impact of a market slowdown just as other real estate practitioners do, there may be some positives in all this for the global marketplace. Now that the talk of a bubble has subsided, more cautious buyers may return to markets, both domestic and foreign. For the harder hit hot market areas of the U.S., the weakness of the dollar against the euro—about 35 percent lower compared to the early part of the decade—will continue to make U.S. real estate an attractive investment for Europeans. And, in spite of some market woes, I’m hearing more and more success stories about international transactions from all parts of the world.
It is these successes on which I want to focus. We all love success stories. They are a great way to communicate and sell new ideas and best practices. They are also a good way for us to motivate ourselves, and others. The Washington Association of REALTORS® publishes a small magazine of nothing but real estate success stories. In a recent member survey, this was found to be one the top membership benefits offered by the Association.
Stories from the Annual Conference
The Asian and Hispanic marketing sessions held at the annual REALTOR® conference in New Orleans in November were great places to hear success stories. Panelists and audience members shared ideas on how to effectively market to targeted ethnic and offshore clients. Attendees learned that, although it isn’t always necessary to speak the language to tap into these markets, relationships are key to almost every transaction. And while this is not big news to CIPS designees, it’s always interesting and useful to hear specific applications of the basic (and not so basic) techniques used by our colleagues to build their business. Those of you who missed these sessions, and who are subscribers to Inman News, can read about the Hispanic session in the November 15, 2006 Inman Real Estate News.
The value of success stories has been recognized at the national level as well. Part of the 2007 NAR International Operations work plan includes identifying and sharing success stories on a global scale. Sounds simple enough, doesn’t it? Well, based on my experience and reports from staff, I can tell you it isn’t as easy as it sounds. Often we’re given a great lead, but the member involved prefers not to share their story—either because of privacy surrounding the client and/or customer, or (very honestly) because they don’t want to give away their best secrets. More commonly, though, we promise to jot down some details in an e-mail, but understandably, current business takes precedence and we never get around to it.
Tell Your Success Story
In Washington, we’ve begun formally interviewing people and NAR is considering the same approach—but on a global scale. The opportunity for packaging and distributing this information is huge—whether in the Winning Strategies column of this publication or through electronic media to the world (and dozens of ways in between). The details of how this will be approached and managed are still to be sorted out, but I challenge you now to be part of this effort. Watch for opportunities to share your success stories, and if/when you are contacted, RESPOND and be a part of it!
It isn’t only good for your fellow international practitioners to learn from your successes, but, because your story will include information about you, it’s good exposure for you!
1 Read his full commentary in the November ’06 Real Estate Insights, accessible at www.realtor.org/research.
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