Remember 1997? The time when real estate businessmen were cussing the economy and the home market situation? Well guess what, those times have been reimagined. Several surveys showed that the number of home sales have decreased significantly since the last few years. Especially in 2010, the home sales factor was much lower than the previous year (2009).
In 2010, Real Estate industry witnessed a $4 Million slump in the revenue charts. This situation reminds the National Association of Realtors that the existing market condition is no different than 1997. There are several factors that account for the negative profits.
First off, the economy hasn’t been doing well. People are sitting on their butts, facing their lawn and knitting sweaters. Why are they doing it? Good question, try looking at the job market and you’ll see. Without any jobs, these potential clients started getting their credit score stained. Some of them headed for huge amounts of debt, while others stuck to the age old “piggy bank” policy.
At this rate, a lot of economists think that it’ll take years for the economy to re-stabilize. More foreclosures are expected to pound the market, and home prices are going to fall. What’s the whole point of a price drop when there’s a scarcity of buying power?