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After the Great Recession: What Will Real Estate Be Like

Over at Redfin, we’ve been wondering plenty what the world will look like after the Great Recession. It feels as though we’re falling and falling, like Alice in Wonderland, with no idea what strange new world awaits us at the bottom of this very deep downturn.

What will the Internet be like? How will venture capital change? Most important to us, how will real estate change? Aready we have seen data-sharing policies liberalized, a radical decrease in the number of real estate  agents and a radical increase in quality, and lower spending from the major brokerages on web technology even as venture-funded businesses have continued to invest millions.

We’ve wondered whether there will be more brokers or fewer, if consumers will choose an agent based on data or a personal connection, if the next generation of consumers will be the data-driven scavengers we’re now seeing pick through distressed properties.

We’ve wondered if venture capital will continue to flow into this industry or leave it alone until the next big bubble. And so we thought we would ask the Bloodhound community the same questions. What’s your take?

Related posts:
  • Remembering the past and choosing to forget it?
  • What does it mean that the NAR won’t defend itself from the charge that it was the sine qua non cause of the Great Recession?
  • ARMs Look Scary Before They Look Good or (How Wall Street Dupes the Little Guy)

  • 8 comments

    8 Comments so far

    1. Dave Grace March 16th, 2009 12:25 pm

      I think we will see a quick rebound next year almost back to the growth of the last bubble. Real Estate is still the best investment one can make and when the prices are this low with interest rates like they are it is the time to buy. Here’s to a quick rebound and another bubble without the pop at the end.

    2. Eric Blackwell March 16th, 2009 1:26 pm

      @Glenn- One thing I gotta hand to ya… You ask the right questions. everytime you post, I want to start writing six posts that day. Kudos for asking the right things and bringing the right stuff up.

      @Brokers- more or less. IMO it doesn’t matter. Either way the day of the broker cheering on his agent infantry from the rear of the pack and offering minimal support will be gone. In its place will be a more hard bitten, battle hardened, special ops sort of broker that will be much more tenacious on the battlefield, online and off.

      The online marketplace is gonna turn into an interesting battlefield as the big idea gang is forced to go smaller, the little guy is forced to do more with an agent website to offer the services of the bigs and those who convert survive and those who don’t well, ah heck…I just need to post about it. ;-) The little guy has the advantage IMO at this stage for number of reasons.

      Great post, Glenn someday we need to meet up and chat about all this.

      Best;
      Eric

    3. Gary Ashton March 16th, 2009 7:25 pm

      As with most businesses there are ups and downs and usually the strong survive and others find a niche that was previously non existant and now is being tapped by resourseful and preceptive busniess people.

      Hopefully this will apply to real estate. Shaking the tree will remove some of the bad apples and any agants that really were only in business during the boom years etc.

      The internet seems to be the new battleground even though public has been utilising the different sources of technology for quite some time.

      In the end the internet has become a great source of business for lead generators and a place where the self motivated consumer can do research in to schools, sales trends, tax rates, drive times from potential office locations to a new home etc.

      At then end of the day the real estate business is about building personal relationships and the ability of the realtor to help a buyer match their needs and requirements to the available property in that market. Having an indepth local knowledege of the market, the history of the homes, a network of contacts to help a sales process move along smoothly as well as the ability to negotiate a good deal will help keep the buyers focus on the individual realtor for some time to come.

      G :)

    4. Glenn Kelman March 16th, 2009 10:28 pm

      @Eric, thanks for the encouraging words, and can’t wait to read your post.

      @Gary, we agree on the importance of local knowledge. It’s a real struggle for a new broker struggling to cover a lot of territory…

    5. [...] one guy’s view of a pretty big elephant. I don’t claim to have all of the answers, but Glenn’s post over at the Bloodhound Blog, sparked me into writing my thoughts (as he often [...]

    6. Ki March 17th, 2009 10:45 pm

      “if consumers will choose an agent based on data or a personal connection”

      I would vote for personal connection. At the end of the day alot of consumers are going to look online and then call their sisters husband to sell them a house.

    7. Mike in Dallas March 18th, 2009 9:56 am

      i agree with the first poster. If they loosen up the credit a little the home selling market will pick right back up

    8. Gary Ashton March 18th, 2009 10:40 am

      The sisters husband aspect will always be aspect of selling real estate but I have managed to “rescue” the kinds of deals and overcome the established connections just by being more knowledgeable and more experienced than the realtor that they already know.

      That’s just part of business but I think you’ll find that when any consumer buys a product they know when they are talking to someone with an intelligent overview and “in depth” knowledge. This is the person who they see as having source credibility…and thats the person they use.

      In the scheme of things…losing an occasional deal to a husbands sister is not really a big concern ;)