Historically, the real estate market has been hard hit by tough economic times and one of the last to recover. This past cycle, however, has been one for the record books, defying history, and proving once again, that real estate is one of the soundest long-term investments possible. In fact, real estate was one of the few industries that showed growth, and one that many called the backbone of our economy during the past few years.

That's not to say we haven't seen our fair share of changes to our landscape. Just a few short years ago, the future of real estate was professed to be online. We who adopted a more balanced view of the use of the internet and traditional agent-centric strategies were richly rewarded with the loyalty of the consumer, while those quick to extricate the agent and replace them with a mouse found their followers and their investors dwindling in an already uncertain economy.

We also saw a good deal of consolidation, typical in economic downturns. This made for good business opportunities for those brokerages with the wherewithal to take advantage of them. Smaller brokerages found they did not have the infrastructure or the capital to be able to support the kind of technology and resources essential for attracting agents and doing business. These brokers found that consolidation made sense.

Most often, they chose to partner with larger organizations that could provide the vast infrastructure, network and support resources to keep them alive and thriving, even in uncertain times.

One thing is certain, we've all learned a lot over the past few years. We've seen the days of decadence drift away and be replaced instead by strong business practices. Technology, though a critical tool, has not replaced human interaction. And low interest rates, along with a restored commitment to home and family, kept us all in business.

What lies ahead in 2002?

Already we've seen a pent-up demand from buyers wanting to take advantage of low interest rates and sellers who want to get back into the market, with existing home sales surging to 6.04 million units in January, an all-time monthly record high.

We've seen useful technology being rolled out as a value-added service to both consumers and agents. And we've seen that now more than ever, investing in the American Dream of homeownership, is good for families, good for our industry, and great for the economy.

Ed Krafchow is President of the tri-state consortium of Prudential California Realty (PCR), Prudential Nevada Realty (PNR) and Prudential Texas Properties (PTP). A dynamic leader and the father of six children, he is a former lecturer at UCLA and UC Berkeley. Krafchow is known for his personal commitment to agent training, motivation, inspiration and integrating technology into daily operations. Krafchow has increased the company’s transactions and sales volume more than four-fold in 10 years. A frequent national speaker on several industry-related topics, Krafchow has been identified by the California Association of Realtors as one of California's top brokers and recognized as a technological leader by the Employee Relocation Council.

Published: April 4, 2002

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