Bubble bursting? What to do?

From the Courier Post:

Housing market affects small businesses
By RHONDA ABRAMS

Hear that steady hiss? That’s the air seeping out of the housing bubble. Home prices are in decline in the United States, with important consequences for small businesses.
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What does a decline in housing prices and construction mean for small businesses?

Less borrowing against home equity. Rising home equity, combined with low interest rates, made it relatively easy to get a home equity loan. Many used their equity to finance starting or expanding a business. Those loans will be harder to get if the equity in your home declines. Expect fewer new businesses to start.

Likewise, many customers and clients of small companies use home equity loans to finance their purchases. If home equity declines significantly, consumers may be less likely to be buying from small businesses.
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If you’re in a construction trade, look for nonresidential work. Nearly one out of every eight self-employed individuals is in the construction industry, according to the Census Bureau. Next year, overall construction spending is expected to decline for the first time since 1991, according to the McGraw-Hill Construction forecast. Most of the decline will come in single-family homes. So start casting a wider net for commercial construction jobs. And start paying down your bills and saving money now.

If you’re a real estate agent or mortgage broker, market to first-time home buyers. The American dream still includes buying one’s home, but many people were priced out of the housing market the last few years. As prices decline, assuming interest rates remain moderate, people who have always wanted to buy a home but couldn’t quite afford to may now be able to qualify. Reach out to them.

If you’re in a remodeling-related business, market to those who have decided to stay in their home for the time being. In a down market, many homeowners stay put. As a result, they may decide to finally make long-needed repairs or remodel and enjoy the home they have.

If you’re a struggling real estate agent, now’s a good time to consider a new line of work. In California alone, the number of real estate agents and brokers increased from 303,351 in 2000 to 511,459 in August 2006. There are too many agents chasing too few sales. No wonder you’re struggling. Ever consider consulting?