HOUSINGNEWS REPORT
HOW TO RECESSION-PROOF YOUR REAL ESTATE BUSINESS
“We are identifying strategic investments that align with changing consumer and agent needs,” he said. “Those opportunities range from investing in technology to allow our associates to work with their clients from anywhere, to rationalizing our total retail square footage.” Real Estate Investors: Gaining Market Share Southern California real estate investor, author and trainer Bruce
Norris is making some modest defensive and offensive moves to shore up his business against a recession – which he believes is coming in late 2019 or early 2020. “The biggest change in our business model will be suggesting California investors move some of their equity positions to Florida,” said Norris. “That move will increase their cash flow greatly and improve the quality of the inventory they hold.”
But Norris, who predicted the coming California housing crash in 2006 and largely liquidated his inventory at the time, is not expecting the next recession to trigger another drop in home prices. “We go into this next recession feeling that real estate prices won’t take much of a price hit,” he said.
HOME SALES VOLUME SLOWING
ANNUAL PCT CHANGE
JUNUARY TO JUNE HOME SALES
“The biggest change in our business model will be suggesting California investors move some of their equity positions to Florida. That move will increase their cash flow greatly and improve the quality of the inventory they hold. ... We go into this next recession feeling that real estate prices won’t take much of a price hit.”
2,500,000
19.4%
2,000,000
9.3% 8.6%
7.6%
6.7%
6.6%
1,500,000
1,000,000
-1.1%
-1.3%
-3.7%
-4.8%
-7.0%
500,000
-9.3%
BRUCE NORRIS SOUTHERN CALIFORNIA REAL ESTATE INVESTOR THE NORRIS GROUP
-15.7%
-17.8%
0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5
SEP 2018 | ATTOM DATA SOLUTIONS
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