The Incredible Shrinking Economy
No one has to wait for the other shoe to drop. So many shoes have fallen that even Imelda Marcos has to be running short by now. When companies like Microsoft and Intel lay off people, things are getting tight. What will the economy look like when (and if) it does come back? Worldwide demand for goods and services seems to be declining. Many of the things people were buying were really unnecessary and it may be that those purchases will never be made.
We do need a lot of energy related technology. As energy gets cheaper due to lower demand, the immediate economic need for this technology diminishes. It is kind of like a roof repair. You can’t fix it when it’s raining. You don’t need to when it’s not. Energy and the environment could offer some really good long term high paying employment opportunities. Education is another field that could stand some expansion and improvement.
I do not think that the real estate business will ever go back to our old familiar business. We will probably wind up with something like the European model…fewer transactions, lower commissions, more competition.
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Showing posts with label energy. Show all posts
Showing posts with label energy. Show all posts
Tuesday, January 27, 2009
Thursday, January 15, 2009
Time For a New Model (Part 4)
Time For a New Model (Part 4)
The links between transportation and energy are pretty obvious. The links between housing and energy likewise. What about the links between entertainment and housing and transportation and energy? 2nd homes could become less attractive as transportation costs go up. Those homes that are close to dense population centers may be more attractive. The beaches and mountains of the southeastern USA are close to very large and growing population centers. Guess what? Their markets are competing well with more exotic destinations now.
Despite the economic downturn, sporting events and video games are still doing well. Macau and Las Vegas are suffering. Is there a connection here? I don’t know how to draw that connection; but if one looks at Las Vegas, one has to see a city that should not be there. The energy consumption is huge. The water comes from far away. Having been there in the summer, I can’t imagine what would happen if the power went out for a whole day. Surely these issues will be taken into account as environmentally conscious people make their home purchasing and vacation decisions.
As we move into an extremely cold winter, many people are beginning to doubt global warming. It is real. Will the ocean front condo (lot) become a ocean floor lot? You can still go hiking on a snowless ski slope; but who wants to do that when there are so many great hiking and climbing locales.David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
The links between transportation and energy are pretty obvious. The links between housing and energy likewise. What about the links between entertainment and housing and transportation and energy? 2nd homes could become less attractive as transportation costs go up. Those homes that are close to dense population centers may be more attractive. The beaches and mountains of the southeastern USA are close to very large and growing population centers. Guess what? Their markets are competing well with more exotic destinations now.
Despite the economic downturn, sporting events and video games are still doing well. Macau and Las Vegas are suffering. Is there a connection here? I don’t know how to draw that connection; but if one looks at Las Vegas, one has to see a city that should not be there. The energy consumption is huge. The water comes from far away. Having been there in the summer, I can’t imagine what would happen if the power went out for a whole day. Surely these issues will be taken into account as environmentally conscious people make their home purchasing and vacation decisions.
As we move into an extremely cold winter, many people are beginning to doubt global warming. It is real. Will the ocean front condo (lot) become a ocean floor lot? You can still go hiking on a snowless ski slope; but who wants to do that when there are so many great hiking and climbing locales.David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Wednesday, January 14, 2009
Time For a New Model (Part 3)
Time For a New Model (Part 3)
Not to say the old basics are no longer relevant. There seem to be new basics added, at least in the developed and developing world. The new basics are energy, transportation and entertainment. Energy and transportation are tightly interwoven and also affect the original basics to a high degree. This is what brings us back to the real estate.
Energy, transportation and food production all have a very high impact on the environment. Environmental issues are the monster under the bed that turned out to be real. There is already a green designation for real estate professionals. That is just a small precursor of what the new real estate markets will be like. How many luxury resort areas have neglected their environment to the point that soon no one will want to go there? What kind of changes will global warming make on 2nd home choices? What will be the new “hot” destinations? Will some of the coastal properties just go away?
Answer these questions and you have the beginnings of an outline for the new economic and real estate model. The hardest part of this will be choosing between what should be and what will be. How serious will the people of this world be about protecting our “mother”?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
Not to say the old basics are no longer relevant. There seem to be new basics added, at least in the developed and developing world. The new basics are energy, transportation and entertainment. Energy and transportation are tightly interwoven and also affect the original basics to a high degree. This is what brings us back to the real estate.
Energy, transportation and food production all have a very high impact on the environment. Environmental issues are the monster under the bed that turned out to be real. There is already a green designation for real estate professionals. That is just a small precursor of what the new real estate markets will be like. How many luxury resort areas have neglected their environment to the point that soon no one will want to go there? What kind of changes will global warming make on 2nd home choices? What will be the new “hot” destinations? Will some of the coastal properties just go away?
Answer these questions and you have the beginnings of an outline for the new economic and real estate model. The hardest part of this will be choosing between what should be and what will be. How serious will the people of this world be about protecting our “mother”?
David Segrest is a REALTOR in Charlotte NC. His website is http://www.segrestrealty.com His email is david@segrestrealty.com
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