What’s ahead for 2009 in the real estate market?

I saw this headline in a recent news feed from Realty.com. This is always a topic that will make me stop and read through it, even if it is just rehashing widely held and reported views. In this case the author is Denise Lones, a respected pundit in the business. Denise, founder and President of the Lones Group, has over two decades of experience in the real estate industry. With expertise in strategic marketing, business analysis, branding, new home project planning, product development, and agent/broker training, Denise is nationally recognized as the go-to for all things "real estate.” Her top five predictions are:

1. Mortgage rates will drop, then rise, and finally stabilize

2. Investors will come back into the market in 2009

3. Buyers will jump off the fence and come back into the market

4. Sellers will become creative with alternative ways to add value to their home sale with incentives such as alternative financing, mortgage points buy downs and other innovations.

5. Listing Inventory will go down as the market absorbs inventory

For the full report, which listed 15 predictions for the year, follow this link.

One prediction (at number 7 on her list) caught my eye – Real estate agents will leave the industry in record numbers. We’ve already seen that in 2008 and she predicts it will get worse in 2009. I’ve opined on this Blog in the past that I believe that the industry is changing into one where there will only be big super teams, headed by all-star, big-name Realtors and part-timers who don’t necessarily need to make a living off real estate. Let’s hope I was wrong on that.

There will also be a contraction of the number of real estate agencies, because of the contraction of the number of seasoned agents and the money that they can bring in. A large number of small franchise operations in Michigan (and a few big ones) are hanging on by their fingernails right now (as are a large number of full-time agents). Another bad year will push most of them over the edge and out of business, so don't be surprised if you read about the failure or bankruptcy or take-over of one or two of the "big name" brokerages in this area. We already saw some of that last year and this year will be even tougher for most.

Is all gloom and doom for the industry then? Not really. The industry needed to contract and change. As in any entrepreneurial industry there is a need to weed out the marginal performers, so that the stronger ones can survive and thrive. The good news for those of us who are both dedicated to the business and willing to put in the hours is that this contraction will result in a concentration of the business to those who remain. Instead of 10 part-time agents each somehow getting 1-2 listings, those listings will end up going to the 1-2 full-time agents who are trying to make a living at real estate. At least that’s what I hope will happen.

In the mean time, I’m also shifting much of my attention onto strengthening my Internet presence, which is where most of today’s buyers find their new home and the Realtor that they use to buy it. I’ve started getting real traction from my main Webs sites – http://www.themilfordteam.com/ and http://www.movetomilford.com/ , with several out-of-state buyers who found me on one or the other. Both sites come up high on the results list if you Google Milford Michigan Real Estate or Milford Michigan Realtor. In fact, if you just Google Milford Michigan my Move To Milford site comes up as one of the only real estate sites. I’ve worked hard to make that happen and I am starting to see the payback from all of that work. Try it at home and see what results you get.