Many companies have started to move to smaller offices in order to save. Official site: NY Museums . Other businesses and organizations were forced to started selling real estate, to repay the investment loans and reduce costs. All this has led to the release to the market an additional sentence of residential and commercial real estate. And as we know from the basic laws of market economy, increasing supply without any additional changes reduces the equilibrium price. Real estate market as it has affected the real estate agency? Sharp reduction in transactions in the market led to increased competition for clients – agencies were forced to reduce the size of their commissions. “Seller’s market” has become a “buyer’s market”. Yes, and the rare buyers that have funds not in a hurry to put them into the first object, and carefully chosen. Many have taken a wait under the influence of analysts’ opinions that the peak of the fall in property prices will be in the first half of 2009.
Now the market dictates who is able to pay. Reduction in income of real estate agencies, the lack of potential customers and calm in the market will inevitably lead to the fact that major real estate agencies have started reduce the additional costs associated with maintaining the support of office staff, the volume of advertising. Among smaller as real estate agencies, which often consisted of several realtors that rent together a small area, many have simply ceased to exist. According to analysts, the number of real estate agents can be reduced to 50% or more by the crisis. What we expect the bulk of agencies property emerging from the crisis period is larger customer-oriented company, representing the real estate market diversified services, management team which has a clear idea about their and is able to manage costs. Customer focus and ability to plan costs would be kept afloat, and smaller agencies who, having overcome the crisis will become more stable. Other agencies can survive only together. For real estate agencies in crisis will sanifying procedure, which resulted in weak and nonviable agency will simply disappear, replaced by professionals.