We’ve been writing about how the upcoming state and local budget cuts will affect our local real estate market. The cuts will create more distressed home owners, increase the challenges for home sellers, and extend our buyer’s market. The extended buyer’s market brought about by the budget cuts will also negatively affect some real estate brokerages.
We’ve already seen a lot of change at the brokerage level since the market turned soft several years ago. Some brokerages have lost market share. Some have been absorbed by other larger brokerages. Still others have gone out of business. We’ll continue to see this trend for the foreseeable future.
Of course this means a few of the brokerages in town will end up in a stronger position as they continue to capture market share from those that have struggled through this market. One such brokerage is Keller Williams Realty. KW just opened a new office in downtown Madison. Many of the agents within Keller Williams have substantially grown their business during the real estate downturn (our team is one example). And many well established agents are joining KW after spending several years at one of the more traditional brokerages in Madison.
The continued buyer’s market will prove to be a struggle for some real estate brokerages, but a time of real opportunity for others.