I am shocked that everyone is surprised by the disappointing new home sales numbers. Was anyone expecting them to be good? The homebuilders aren't building unique-'must have' product and your local agent isn't calling on you to make a case of why you should buy a house. Real estate agents and the housing industry are doing nothing to create improvement but waiting for the economy to improve.
YOUR SECTOR OF THE ECONOMY IS NOT GOING TO IMPROVE UNTIL YOU IMPROVE.
Economic Advice-
1) Quit waiting for good economic news.
2) Relearn how to create revenue through sales and sales skills.
3) Organizations must make serious commitment to sales training and sales effectiveness in a tough economy. Real sales skills have been lost over a decade of a synthetic economy where companies neglected a commitment to sales training.
4) Do not wait for consumers, create them. Only individuals and businesses that insist on their people creating revenue opportunities will survive.
5) Build sales muscle through sales training now or you won't be ready to when things do improve.
The reality is that the real estate industry doesn't know how to sell their products, make sense of value or justify to the public why this is a great time to buy. Except for a handful of professionals this is forgotten skill set. With the cheapest mortgage rates in my lifetime and housing prices, in some places, below construction cost, you would think that your local realtor would be pitching you, but they do not! Why? After years of economic bliss and insufficient sales training, sales motivation, sales discipline and sales persistence the majority of real estate people are unable to produce revenue.
And this same story applies to automobiles, furniture, appliances, investments, consumer goods, advertising, and I could go on and on. After decades of order taking, easy credit and an overhyped economy businesses, individuals and entire industries have forgotten how to sell.
If you are waiting for your sector to improve, jobs to come back or economic numbers to somehow magically improve you are in for a very painful 4 to 5 years. The most valuable individuals and companies in this economy are those that are able to create and drive revenues by committing to sales training, sales motivation and sales skills.
Grant Cardone, Sales Training Expert and NY Times Best Selling Author
Follow Grant Cardone on Twitter: www.twitter.com/grantcardone
The reason is that with rates so so low, there will be a rise in rates. If the rise in rates amounts to 8%(from 4.5%) for home loans that will drop the price of housing by approx 30%. So.... while you might think things are great, just wait for the inevitable rate increase and observe the further impact this will have on housing.
The country has been painted into negative real interest rates. In order for rates to return to a historical norm assets like housing and government bonds will lose value inversely as to the increase in rates.