In 2005 and 2006, the market in just about every asset class was booming. Everyone was getting rich, and very few people saw the end of it coming. But those who took the temperature of the market knew that things were too hot -- much hotter than they had been in the recent past. Those who followed statistics of affordability -- average loan-to-values of mortgages, average credit scores of debtors and so on -- would have seen the end of the boom coming quickly. But few people, and even fewer agents, want to look past next month's closings to steer both their careers and their clients in the right direction. Those with market-cycle literacy had prepared their business for floods of REOs and short sales and made literal fortunes by doing so. Those who didn’t were crushed. ...
- In today's information-obsessed culture, truly valuable real estate professionals have the ability to tune out the noise and evaluate the market from an objective perspective.
- Analyzing reputable statistics, graphs and numerical facts is the place to start when beginning to understand how different economic factors correlate with your industry and affect your business and your clients.
- Observing your industry from a 10,000-foot-perspective will prove invaluable through market fluctuations.