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The shrinking real estate pie

Realtor Notebook

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We like to fix things, but I think it is important to find out what is broken before we go about the process of fixing it. Are we trying to fix something that is unsustainable or should we be building a new real estate industry? In my town a large Ford plant will be closing soon. The factory builds large Ford trucks and nothing else. Demand for the trucks dropped and remains at an all-time low. Apparently the factory cannot be retooled to build something else. They built a huge plant that employs a lot of people but it isn't sustainable because there isn't enough demand for the product. The real estate industry is broken. We didn't break it -- we just didn't prepare for it. Just like the local Ford plant did not have the foresight to retool five years ago. The sky-high housing prices of recent years were not sustainable, and our industry built itself around money that isn't there anymore. We kept chugging along because money was cheap and easy to borrow. We talk about com...