The day after the terrorist strikes upon the World Trade Center and the Pentagon, headlines of major news sources portrayed the precarious status of the economy: "Attacks could tip U.S. into recession" and "Shock could shatter already fragile economy" (USA TODAY); "Economy in the balance" and "Strength seen hinging on consumer reaction in wake of attacks" (CNN.com); and "Attacks Raise Fears of a Recession (The Wall Street Journal).

To put it another way: Will consumer spending avert a national recession – and thus be a defiant sign of the country’s continuing vitality?

While the answer remains to be seen, it will lie in great part within our own industry. After all, it is the housing market that has buoyed the otherwise faltering U.S. economy throughout 2001. Whatever agents and brokers can do to extend the record period of robust home sales will be crucial to the country’s economic health. After Sept. 11, it’s no longer a matter of business as usual. It’s now business more than usual.

Besides blood donations, charity contributions, and symbolic show of support, here are a few things real estate people can do:

• First, The National Association of Realtors has responded to the tragedy by establishing the REALTORS Housing Relief Fund to help victims of the attacks make mortgage and rental payments. REALTORS can contribute through local and state associations or to NAR itself.
• Carefully evaluate reporting of the economy to be able to share accurate market information with your customers,

  Much mass media coverage of economic news this past year has been a daily barrage of gloom and doom, giving the mistaken impression that the total economy was sinking. In spite of all the disappointing economic news, home buyer and seller confidence remained high. While home sales dipped in recent months, they have still been at near-record levels. The National Association of Realtors has predicted more than 5 million home sales of existing single-family homes in 2001. That would be the second highest ever, surpassed only by the record sales of 1999. The National Association of Home Builders foresees 900,000 new homes this year.

  Whether those forecasts will be accurate is, of course, now uncertain. In the face of this uncertainty, make sure your customers are aware of the recent strength of the market and that low interest rates are now even lower, following the Federal Reserve’s action Monday, Sept. 17. The eighth cut this year lowered the interest rate to 3.0, a real boon to home buyers.

• Given housing’s recent track record, REALTORS have – overall – been doing what agents and brokers should be doing. Now it’s a matter of doing more of the same – and better.

  This means working even harder. Remain in close touch with your current customers. Be aware of their employment and financial situations and how they have been affected by the terrorist attacks of Sept. 11. Become their friend and ally. Do the same with as many former customers as you can, working back through your records.

As real estate people, we have a unique role in the immediate future of the nation’s economy. It’s not all up to us, of course – and it may be beyond all our efforts – but we need to do all we can to help determine the direction markets are to take.

RE/MAX International offers condolences to the families of victims of the terrible events of Tuesday, Sept. 11. Our thoughts and prayers are with you.

Published: September 26, 2001

Use of this article without permission is a violation of federal copyright laws.