The housing market crisis, how to survive as an estate agent

It is a fact, the global economic crisis has reached all corners of the world and is affecting all areas and economic sectors, inlcuding, of course, the real estate sector. However, as the causes are varied economic environment we are experiencing, there are several factors to consider that show a light at the end of the tunnel, however small. Consider first the causes of this housing crisis. We can start out as the main culprit of the mortgage collapse in the United States. The so-called subprime mortgages, aimed at customers with poor credit, so the default risk is much greater than any other credit. This purchase made accessible and selling speculative markets that normally could not even buy a home, much less be investing money that did not have in real estate. Besides that the speculation was accompanied by high leverage, that is under mortgage, the sold, were canceled back to buy another home with a new mortgage, both unfunded hipteca operations through bridge. Put in simpler words, buyers invested imaginary money hoping to get real profits. This real estate investment frenzy led to an unprecedented increase unprecedented demand, and hence a rise in prices overvalued, and therefore the debt. This, in turn, resulted in uncontrolled growth in supply, causing an increase in construction projects condominiums, residential houses, etc..

saturating the market with over priced properties and exceeding inflated and unrealistic demand exceeded previously.

To these causes we may add even more, such as globalization that affects not only the housing market, but virtually all markets, wiping out small and medium enterprises that are gobbled up by large transnational corporations. And it is these same big corporations who have saturated the market for goods produced in series and in such numbers that have exceeded the demand of consumers, although they insist (and to some extent have achieved successfully) to become a consumer society and pragmatic, where it has only you have and how much, buying regardless of whether it is necessary or not. I could go with more causal, but I deviate from the topic .... Now let's analyze the factors that can help us overcome the current situation and get across the tunnel. We must not forget one very important point is that real estate has always been, and remain a good investment, for the simple fact of being a commodity and does not deteriorate over time (in the case of vacant land, but even those with construction if given proper maintenance and improvements), in addition to the need for housing continues to grow, and in the case privileged who live in coastal areas, the number of beaches in the world is limited, which limits supply and increases demand. Regardless of the current situation, the housing market always recovers, it is a matter of time. The problem We really should matter is how long this recovery will take and prepare to cope with this period.

On the other hand, there are always buyers and investors looking for the best opportunity, the best investment, best price. Which brings us to the obvious and only solution possible in the short term, simple and trite as it may seem: lower Property prices, and who will gain the first down in the long run, because prices will inevitably go down and down. And those who began the descent will be those who have had to lose less and have the opportunity to reinvest their money, either in other markets that are at a lower point of the slope, or wait until prices fall further in the same market. As Realtors, it's time to convince customers who really want vendors to sell , to lower their prices significantly to attract property investors who are waiting. And also, it's time to take hold of the customer portfolio investors who are hunting for a good opportunity, a good deal, the best possible price. Unfortunately, there is a good time for those just starting in real estate agent's career, because the competition is fierce and customers few. But those who know how to use these two factors can not only cope the crisis, but even could benefit by it.