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Why Real Estate Isn’t a Zero-sum Game

dpr zero sum 2016In recent years, housing has failed to move the needle in growing transactions or homeownership rates, which is causing some to believe real estate is a zero-sum game.

We begin to think there will only be a certain number of transactions in a given year, and we're all just fighting for a piece of the pie. But, what about growing incremental sales? Isn't that the ultimate goal?

Bear with me because it's the New Year and the time to be both reflective and aspirational.

A zero-sum game

A few months back, the Notorious R.O.B. (Rob Hahn) tackled this zero-sum game issuezero-sum game issue. We have a lot of respect for Hahn's industry insights and wouldn't want to have to match wits in a dark alley.

To be sure, he is talking about the inability for technology alone to drive incremental home sales. Still, it got me thinking, does anyone have the ability to make more sales happen?

Are down payments a core issue?

Surveys such as the National Association of Realtors Profile of Home Buyers and SellersNational Association of Realtors Profile of Home Buyers and Sellers find that first-time homebuyers are at a new low, and the finger's pointed at the core challenges of saving for a down payment, student loan debt and increasing rent and home prices.