Most business industries find themselves being subjected to probable rises and falls over time, and the real estate business is no exception. In fact, in recent years, the industry has been subject to rapid decline as the housing market goes through rises, falls, and inconsistency. Some of the latest finance figures (released from the Bureau of Statistics) show that the real estate business is in hot water. As investors continue to abandon the housing market, owners and occupiers alike are also taking out smaller and fewer mortgages than they were in the years before.
In the UK, for example, real estate agencies have been hit hard by the fall in the housing market – particularly in the south-east and London. Well over 5,00 real estate agents are at risk of losing their jobs, as their reliance on transaction activity proves to be a possible downfall. There has been a 20% fall in the number of real estate sales in and around London since 2014; that is a cut of up to a fifth of the expected and usual sales. This massive drop in the real estate business is causing panic among those that have made their reputation and their financial stability in the industry. As new innovations in the industry like the evolution of online competition, as well as sufferings of the more traditional kinds, such as falling prices and fee cuts, continue to barrel through the business, it has created a vortex that is unstoppable.
Real estate agents are in jeopardy, as housing prices have no impact on their commission. Transaction activity is where the vast majority (if not all) of their income is brought in, and with so many putting off the decision to buy or invest in property, the very core of real estate agents’ jobs is grinding to a halt. More than 150 estate agency firms closed in 2017, and the numbers are thought to be closely rivalled, if not surpassed, at the end of this year. While every business faces downfalls and surges, it seems that the real estate business is suffering a prolonged downfall…one of which it is uncertain when it will end.
While the real estate business may be in peril, those that have access and ownership to the real estate that they need are in an excellent position. The necessity for building inspectors Adelaide to oversee construction, coupled with the need for real estate representatives that take care of renters, mean that even as the business goes into decline in some respects, it will continue to hold steady in others. It seems that, for now, the real estate agents are the ones associated with the biggest risk. If no one is willing to invest in or purchase property, the business of selling real estate is in distress.
Like so many businesses, the real estate industry is subject to falls and rises over time. However, the recent and current state of the housing market has caused a deeper fall than expected, resulting in individuals that have made their riches and their name in the industry becoming panicked at the state of the business, and its future. Now is a great time to be an owner or a renter, but not a fantastic time to be a buyer or an investor.