Foreclosure Boom = Real Estate Bust?

There have been numerous news stories about the increase in foreclosures. According to a press release from RealtyTrac, foreclosure rates were up 30% in Quarter 3 of 2007. This has caused a media frenzy about the people being foreclosed on and the status of the real estate market as a whole.

Is this foreclosure boom to blame for the recent lag in the real estate market? It seems that way. People see on TV that houses are foreclosing, prices dropping, and thinking "maybe real estate isn't the best thing to invest in right now with all this stuff going on. Maybe I really can't afford it, maybe it'll lose it's value if I buy now."

Like the stock market, the real estate market is an investment based (aka people based) market. We rely completely on the people of the world, nation, and states we live in. Their outlook makes all the difference to buying and selling decisions.

The US Council of Mayors released a similar report stating "The foreclosure crisis is no longer just about mortgages, entire neighborhoods are being negatively affected on several levels. This issue is now the number one economic challenge of many American cities."

This is not something that can be turned around immediately, but keeping your investors and clients up to date and educated about mortgage rates, budgeting, and other financial information is always in their best interest as well as yours.

Don't look at the recent declines in the market as "lost commission." See it more as an opportunity to fine tune your business. Reconnect with your clients, develop literature on mortgage rates and financial advice. Use your required real estate CE training hours to develop your business more. Look for the opportunities in the market for expansion of your business. Give it time, be positive, and the market will increase again.

Remember ... "Don't Worry. Be Happy."