Housing SHORTAGE on the Horizon... Really??

Interesting take from Mike Castleman, founder and CEO of Metrostudy, which tracks real-time data of the country’s inventory of new homes. Mike says a housing shortage is looming that will soon will create a huge surge in demand for new homes. As such, now is the time to buy, he says.

In the 41 cities Metrostudy covers, 78,000 houses are either vacant and for sale, or under construction — that is less than a quarter of the new homes that fell in that category during the housing boom in 2006 and way below the level of a decade ago. "If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."

Donna's Note: CNNMoney says yes, the "shadow inventory" is shrinking...slightly. But it's still about 1.8M... which is a lot more than 78,000

The historic drop in new construction mixed with the decline in housing prices is laying the foundation for a dramatic recovery in residential real estate, Castleman told CNN. Castleman expects home owners soon will start returning, which will drive up prices in many markets later this year.

While demand remains low for new construction, he expects that to change. He foresees the recovery following a similar path as previous ones: A severe housing shortage will drive a big increase in demand. “We'll get a big surge in demand and the drywall companies will take a long time to ramp up, and it will take years to get new lots approved,” he predicts. “Buyers will show up looking for a house in a subdivision, and all the houses will be sold. The builders will tell them it will take six months to deliver a house." But they’ll want the house so bad that they’ll “bid the prices up."

Donna's Last Note: Interesting take and yes, I do think this will happen, but my own crystal ball says it's not yet THIS year...And a rise in interest rates without a massive improvement in unemployment will keep the skids on any major improvement... just my 2 cents!

Systems... again

To build a sustainable business in Real Estate Sales, Systems make the business flow smoother and allow you to do more in the time you have. How many Systems do you actually need? What systems are most important?


Basic Systems should start with:
Generating Leads Systems
Past Client and Centers of Influence/Database Systems
Lead Follow Up (biggest loss of business for most Agents is here)
Pre-Qualifying Systems for both Buyers and Sellers
Buyer Consultation System
Seller and Buyer Presentations (yes, that’s a system)
Listing System (day 1 to day of accepted contract)
Pending Contracts System (day 1 of accepted contract to day of closing)
After Closing Systems

Taken to the extreme, there are probably dozens of systems that could make your business run faster, smoother, and with fewer headaches.

More Specific Systems get added as your business grows and may include:
Office Supplies Systems
Continuing Education Systems
Price Reduction Systems
Showing Systems
Open and Closing the office Systems
Checklists for Daily, Weekly, Monthly, Quarterly, Semi-Annually, and Annual items

The lists could go on and on. I'd love copies of any Systems YOU have in place now as I'm putting together a MASTER list of systems and best practices for the purpose of a New product called "Systems Coaching". If you're interested, let me know.

Donna.Stott@YourCoachingMatters.com

Starting a ping.fm account - do you use it?

Certified Investor Agent Specialist

I'm at the CIAS training March 10-11 in Atlanta learning even more about working with Investors in our fabulous real estate market.

Would love to share ideas with you and help you to help others make great long term investments that pay for themselves, provide cash flow, and even PROBABLY appreciate... All using MOSTLY OPM (Other people's money).

Seriously... can you go into a bank, put 20% down, and buy a CD? No... Can you buy stocks with 25% down? 50% down? NO!

There is NO better investment than real estate... Let's talk about it!

Donna and Mike Stott