Here at the Oldfather Group of Ocean Atlantic Sotheby’s International Realty, we feel very fortunate to work in one of the most affordable and beautiful places in the nation. Working in the world of real estate here is really just the icing on the proverbial cake.
We feel especially lucky because the economy is now good, and real estate is thus also very good. That isn’t always the case, but it certainly is right now, as the economy has recovered nicely from the brutal recession of a few years ago and the market is thriving.
But look at that statement we made above and think about it for a second.
“The economy is now good, and real estate is thus also very good.”
Does that ring true to you or is there something inherently wrong with that general statement? Well, if you read that with a bit of skepticism, even after our urging, you’re completely correct as it’s totally off base. In fact, it should really read like this:
“Real estate is now good, and the economy is thus also very good.”
We all learned a few years ago that the real estate industry drives the economy in a way that no other industry can. When the real estate market goes into a downturn, the economy will certainly follow suit – and it did in a big way.
But here’s the other thing that often goes unnoticed. There are a huge number of secondary industries that depend on a strong real estate market in order to thrive, or in some cases, just to survive.
Some of these industries include:
- Home builders. If the market is weak, people are not contracting to build new homes, thus home builders tend to struggle in a big way. Some didn’t make it through the recession, and most that did emerged much leaner that they entered.
- Architecture firms. Same concept – if people are not building homes or businesses, they have no need for architects.
- Appraisal Companies. These companies make their living appraising homes and properties, most of which are going to change hands. Sure, some are for refinancing or other purposes, but the majority are due to pending sales. No sales equals no work, so a strong real estate industry is vital to these companies.
- Furniture Stores. While it’s true that even renters need furniture in their homes, homeowners spend considerably more money on furnishings and on decorating their homes. They are invested in their property and want it to look as nice as possible.
- Garden Supply Companies. Not too many renters take the time to cultivate their land and grow their own vegetables and/or flowers, but many homeowners take the time and effort to do this. If less people are buying homes, that means less people are tending to their gardens.
- Building Materials Companies. These are companies that supply products to home builders and do it yourselfers. They tend to also be adversely affected during a downturn in the real estate industry.
- Mortgage Companies. Firms that specialize in home mortgages are obviously one of the first ones affected by any downturn in the housing industry. They make their money through home sales and refinances, so it stands to reason that they would be hit hard when real estate is struggling.
These are just a few industries whose livelihoods depend on a strong and vibrant real estate market, both here in coastal Delaware and really throughout the world. But there are obviously many more.
And that’s why owning your own home is still considered the very foundation of the “American Dream,” not just for the home buyer, but also for many of the locally owned stores and shops that will service you for many years after you buy that dream home.
If you want to learn more about coastal Delaware’s real estate industry, please contact us here at the Oldfather Group, either on our Website or via telephone at 302-260-2000.
We’d love to introduce you to the area we call home, and show you first-hand how great a life at the Delaware beaches can really be.
And believe us when we say – it can be so much more than you imagine!