BrokerageIndustry News

Real estate companies prepare for market shift

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As the high-flying housing boom loses feathers in some formerly hot markets, real estate consultants say it is time for brokers to focus on those survival skills that will carry them through a market shift. "There are two things that brokers watch: interest rates and the bubble scare. In general, what I've witnessed is that brokers are taking a hard and strong look at expenses built in a great market and looking at a normal market -- and trying to pair those two things up," said Kenneth L. Jenny, managing director and CEO for tranCen, a company that offers business advice to residential real estate companies. "People either face that dilemma at the time the market goes down or they do it ahead of time," he said. "I've heard more brokers now are being very conservative about expenses and in some cases cutting back now even while the market is good." Many agents, brokers and companies have joined the real estate bandwagon at a time of record home sales and home-price appreciation, and h...