A Long Winter

This has been a long, cold, snowy winter in Connecticut. Probably one of the snowiest I remember since childhood (if even then). And while we always enjoy that first storm... an excuse to make a snowman, go sledding, stay inside, catch up on movies, read a book... after an unending winter of blizzards, we are more than ready to see that first crocus emerge. We're still maneuvering around five foot snow banks, shoveling snow off of roofs, and feeling a little claustrophobic. But we maintain our optimism... the snow will melt... the crocuses will emerge!

The same is true of our economic state. It has felt long and protracted. At first, companies held back on relocations (imposing hiring freezes and lay offs). When transferees were being moved, it was more often because of the closing of a facility than for a promotion. Many found themselves facing loss-on-sale or, even worse, negative equity situations. And their choices were limited: to move, suffer economic losses and keep their jobs or to stay, without a job, and hope they could find suitable work in their current location. It has been a challenging, demanding, and sobering time.

And while it still feels like "winter" and we are still waiting to see those crocuses emerge from the hardened ground, we are also starting to see signs of life. More calls from employers we haven't heard from in a while. Relocation and hiring seem to be back. More employees are ready, willing, and able to make the move - and excited about the prospect of their new position in their new community. Relocation homes are selling faster. As happens in most economic cycles, it takes time for people to adjust to the "new normal" and become accepting of the idea that housing prices have declined (especially when it comes to "their" house). Once they do, we can finally move on. Homeowners now get it. They are listening to pricing advice. They are doing the appropriate repairs and improvements, and staging their homes for a quick sale. They are... as well they should ... moving on with their lives.

From all that I read and all that I am seeing on the ground, there just may be some blue skies on the horizon. We may not emerge the same as we were before this economic meltdown, but we all will emerge stronger and wiser for it. ...And that's a good thing.

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A New Year!

It's a new year and I spent the day preparing for another planning session with my team. New Year's Resolutions aside, January is a time to reflect on the year gone by and to set our sights on new horizons. How can we better serve our clients? Grow our business without compromise? Expand our opportunities? Reinvent ourselves? What have we learned from the mistakes we've made; the problems we've solved; the most difficult situations that we've faced in the past year? Where have we made a difference?The uncertainty of the economy in a continuingly difficult real estate market has certainly created challenges beyond any that my team has faced in previous recessions. Like it or not, 2010 was a year filled with opportunities to hone our skills as relocation professionals.

Under the best of circumstances, relocation is a highly stressful situation. Families are being uprooted, employees are starting new jobs, children are settling into new schools. In an uncertain economy with declining real estate values, the challenges become even greater. And, as much as people don't like hearing bad news and we don't like delivering it, providing accurate information and proper guidance upfront enabled our clients to set realistic expectations and, in the end, to make the right decisions for themselves, their families, and their careers. By sharing our expertise, years of experience, relocation and real estate knowledge, we helped employees to make decisions with eyes wide open. No surprises. No false expectations. No ongoing stressful distractions that so often derail people from the routines of their daily lives. This alone is an accomplishment to be proud of!

Like everyone, we are hopeful that this year will bring a continually improving economy. We will be tracking its progress closely. And, with a focus on the needs of our clients, we’ll deliver the caring advice and resources needed to make each and every employee’s relocation a positive moving experience.

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Relocation in the New Economy

I recently attended the fall conference of the Relocation Directors Council in Seattle, Washington. It is one of the premier organizations for real estate relocation practitioners and its members are the best of the best. What struck me, as I shared many a conversation with relocation professional after relocation professional, was the massive shift that is, once again, occuring in our industry. As happened in the recession of the late 80's/early 90's, everyone is looking at and re-thinking their business model. How can we support our business without compromising the high level of personal attention that creates the positive consumer experience necessary for a successful relocation?

When so many transferees are putting off selling and purchasing real estate, the traditional manner of compensation (referral fees earned through the real estate transaction) can no longer sustain the business model. And is this major shift something that is a temporary condition of a "bad" real estate market or is it a new reality? Should we be re-thinking the types of services we offer and the manner in which we are compensated for them? Is it time to break down all that we do into a "menu of services" (i.e. area tours, rental assistance, spouse/partner employment assistance, school and area orientations) and charge for them piecemeal? Will the new and future employee still want to own a home or will the legacy of this deep recession be a "new normal" that creates the need for a variety of housing and lifestyle options and services?

Change brings new challenges and opportunities. This major shift offers us a chance to "re-invent" ourselves. At the recent conference, so aptly named "Robust Vision = Compelling Results," there was much discussion about new directions. I believe it is time to jump-start our businesses, re-think what we do, and deliver a viable "product" that addresses the new needs of both the employers who are hiring and transferring employees and the employees who need to get from point A to point B with a minimum of stress.

I'm reading: Relocation in the New Economy

Social Media & Real Estate

These days, the world of social media seems to be analogous with the real, physical world in which we live. It is the avenue through which news and information are shared, people socialize, and companies innovatively conduct business. Currently, H. Pearce Realty Co. is increasing our web presence and we all need to get involved because it is truly necessary.

A The New York Times article, "Broker Tech, Version 2.0," confirms this fact for real estate professionals, in particular:

Frank Dell’Accio, the service’s president and broker-owner of Century 21 AA Realty in Lindenhurst and Seaford: “To have a Web site today is not considered innovative; that is considered expected. Social media marketing is what the consumer expects today.”

Read the rest of the piece here if you are looking for a creative approach to increasing your business.

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New England's Recession Recovery, and more

Take a moment to read some positive news...

LAT (11/11/10): Vice President Joe Biden unveiled a new federal program to make it easier for Americans to make their homes more energy efficient, saying…that it will give families "the tools they need to invest in home energy upgrades. Together, these programs will grow the home retrofit industry and help middle-class families save money and energy."

MortgageLoan.com (11/11/10): Mortgage rates fell again to new record lows this week, following the Federal Reserve’s announcement that it plans to buy $600 billion in Treasury bonds to boost lending and the economy…Those who can get approved for a home purchase or mortgage refinance are finding historic bargains on mortgage rates.

WSJ (11/10/10): The commercial real-estate industry stands to benefit from the shifting political power in Washington, as Republicans attempt to roll back some parts of financial regulation and stanch any efforts to raise taxes.

NHR (11/10/10): The city continues to benefit from a stable tenant base, said H. Pearce Co. President Barbara Pearce. “Unlike other times of economic stress, there are not large new blocks of space coming onto the market and increasing the vacancy rate further. This makes New Haven better able to withstand the downturn, without precipitous declines in rental and sales rates,” she said.

AP (11/9/10): Even as the national unemployment rate remained at 9.6 percent in September, New England states benefited from more hiring. Except for Rhode Island (Stress score: 12.08), New England has been recovering from the recession better than much of the nation…The region has an educated work force in professional and high-tech jobs, it avoided the real estate boom and bust and it's home to a high-end manufacturing sector…"New England is outperforming the rest of the country in many respects," said [Ross] Gittell, [an economist at the University of New Hampshire].

The Commercial Record (11/8/10): To be successful in the current housing market, real estate professionals need to educate themselves about buying and selling distressed properties and working with investor buyers, who are a significant part of the market," said RE/MAX Chief Executive Officer Margaret Kelly.

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