The Cycle of Strength: Why Hard Times in Real Estate are Forging Our Best Leaders

The Quote That Explains the Market Cycle

G. Michael Hopf’s observation about human and economic cycles has become legendary: “Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.”

For the past two years (2024 and 2025), this quote perfectly captures the psychological disconnect happening in the real estate industry. We are living proof that "hard times" are back, but the market's memory is still stuck in the "good times."

The Unmistakable Return of "Hard Times"

Let’s be crystal clear about the current reality in real estate:

• Sales Volume Has Plunged: In 2024 and 2025, the number of home sales has fallen to levels not seen since 1998. The key difference? The U.S. now has over 50 million more people demanding housing than we did back then. Less is selling to far more people.

• The 2009 Echo: For many veterans, the market over the last two years feels eerily similar to the challenging, high-pressure days of 2009 and 2010—a time when only the most resilient agents survived.

This sustained low sales volume and high-interest-rate environment is the "hard times" for our industry, regardless of how other sectors might be performing.

The Seller's Disconnect: The Ghosts of the Boom

The difficulty lies in bridging the gap between the agents’ reality and the sellers’ perception.

Many sellers still believe we are in the boom days of 2021—a post-COVID frenzy where homes sold "at will" for irrational prices with zero concessions. They are resistant to:

1. Price Reductions: Sellers cling to peak prices, leading to massive inventory and soaring Days on Market (DOM).

2. Buyer Demands: Sellers balk at offering closing cost credits or rate buydowns, even though buyers desperately need them to offset high mortgage rates.

   
   

As agents, it’s our job to serve as the market interpreter, gently shifting their mindset from the emotionally charged "good times" to the data-driven reality of today.

The Opportunity: Hard Times Forging Strong Leaders

If you are a real estate agent or leader who has navigated the last two years, you are already one of the "strong men" (or women) this quote describes. These tough times are not just weeding out the weak; they are providing invaluable training:

• For Agents: You are mastering skills that disappeared during the boom—disciplined prospecting, skilled negotiation, and precise pricing strategy. You are becoming a consultant instead of an order taker.

• For Leaders: You are forced to lead with discernment, stability, and emotional intelligence. You are building teams that are lean, disciplined, and prepared for any economic weather.

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The work you are doing right now—the phone calls, the difficult pricing conversations, the long hours studying micro-market data—is being done in the dark.

But be encouraged: the light is coming. Every strong strategy you implement now is a brick in the foundation of the next economic cycle. When the market inevitably shifts and interest rates stabilize, the strong agents who survived and thrived in the "hard times" will be perfectly positioned for the greatest market share and the biggest celebration.