Springfield-area Realtors are reacting to economic changes much the same as families and businesses everywhere.
Real estate professionals try to be proactive to economic changes, but the economy is so fluid that they often react to the "change of the day," so to speak.
What started as a housing problem stemming from the secondary loan market has now spread to housing, banking and manufacturing - all combining to create the highest unemployment numbers in years. December figures - the latest available as of Feb. 25 from the U.S. Bureau of Labor Statistics - showed a national unemployment rate of 7.2 percent, compared to a Missouri unemployment rate of 7.3 percent - the state's highest rate since 1984. Unemployment in the Springfield metropolitan statistical area for that same month was 6 percent, according to data from the Missouri Economic Research and Information Center.
Housing seems to be rebounding slightly, so the new pressure is for housing to pull the economy back to some level of normalcy.
Real estate professionals are modifying their businesses and examining what can be trimmed from their budgets without compromising service. Much like other businesses, Realtors are waiting out the downturn in the market. Clients constantly seek to find the market bottom and ask when they should invest or sell.
These are hard questions, and the answers likely won't be clear until the market is on a hard incline and the bottom can be viewed by looking back.
In the meantime, there is an enormous amount of pent-up energy in the housing and commercial markets that, if history is to be believed, will push the market up quickly when it takes off again.
Many Realtors are investing time to educate themselves about changes in the industry. Lending is going through a huge rewrite, and Realtors must stay up with on changes to serve their customers.
New loans and government incentives are being initiated and reinterpreted almost daily. Problems are emerging that we have not dealt with in the past. The standards of qualification are changing for both homeowners and private mortgage insurance coverage. Purchasers and the property to be purchased are more closely examined and rated. Consequently, purchasers that qualified previously may not any longer, or their rates may exceed affordability.
Consider that a homeowner that is "saved" from foreclosure by a short sale or bailout program may not qualify for repurchase. These changes and others in the real estate market must be dealt with by real estate professionals, which is why ongoing education is important and continues to take place.
The Greater Springfield Board of Realtors has kept a proactive approach to the changes in the industry. Our member services remain strong and intact. Technology - and how we connect with clients and members - has been a priority for the board.
For example, Transaction Desk, an online platform that enables Realtors to manage and store all the information necessary for a real estate transaction, lets us tie the real estate transaction and the outside services together to create a more seamless process. The public demands a high level of connectability to information that is continually enhanced and accessible through www.gsbor.com. Through industry partners, local Realtors promote positive messages concerning homeownership. The importance of real estate ownership is so relevant to the current economy. It remains one of the best investments, the basis of wealth and one of the most important rights that U.S. citizens enjoy. It is important that this message isn't lost in the midst of the trying and uncertain times facing the nation.[[In-content Ad]]
Doug Andrews is past president of the Greater Springfield Board of Realtors and broker-salesperson at Marshfield-based Century Realty. He may be reached at douglasaandrews@aol.com.
