Steve Murray on Economic ‘Bubbles’ – and Why Housing Remains Steady in 2021

Reflecting on the record-breaking success of the real estate market in the latter half of 2020, Steve Murray, founder of REAL Trends, is hopeful for a bustling year ahead. He admits, however, that it’s impossible to predict exactly where the market is heading – so agents should be prepared for any and all outcomes.

Murray, having worked in the real estate industry for 44 years, joined RE/MAX Chief Customer Officer Nick Bailey on “Good Morning RE/MAX” to help agents prepare for a busy start – and unknown road ahead – in 2021.

“The big story [in 2020] was the explosion in business in the last six months of the year,” Murray said. “And now the question is: How can we replicate that when a lot of markets have less than a month of inventory?”

According to Murray, the inventory of homes in the U.S. is currently 30%-40% lower than it was exactly one year ago.

So when Bailey asked Murray how he reacts when people speculate the U.S. is currently in an economic bubble, he responded saying any bubble will burst and that the entire economy is a bubble – with one caveat.

“I don’t think housing is a bubble per se because the underlying demand for housing still exceeds supply,” Murray explained.

He also offered advice for agents and brokers navigating this persisting seller’s market.

“What we’re suggesting to brokers and agents is the same thing we suggested last March,” Murray said. “This is the time to stay focused on your relationships with your staff, your agents, your customers, [and] your friends and family, of course.

“Don’t start spending money – you don’t have to spend. Just don’t do it. A lot of brokers learned that last year in March, April and May,” he continued. “And the reason their earnings did so well is also because they stopped spending money on stuff that doesn’t help them build their core business. That goes for agents, brokers [and] for anyone.”

While he advises being conscious of costs, Murray did suggest that some business investments – like the RE/MAX exclusive First app – are worth the cost if the agent is actually willing to work with the tool enough to get their money’s worth. Ultimately, he said, tools can act only as an accessory to an agent, and their success must come from their own personal drive.

“[First] was a great acquisition by REMAX [and] a great tool to have right now,” he says. “These are some great tools [but] it doesn’t guarantee success. It guarantees [agents] have a higher probability of success. In this kind of market, just give me a better-than-even chance to succeed, and then I’ll take it.”

Tune into this week’s episode of “Good Morning RE/MAX” to also hear from Lydia Pope, NAREB President-Elect, on NAREB’s goals to continue creating fair housing opportunities for Black communities across the U.S.

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