Consumer confidence in todays market is critical.
Consumer confidence is critical
by Castanet Story: 43217
Nov 20, 2008 / 5:00 am
Although the differences may outweigh the similarities, there’s at least one aspect of the current real estate market that we share with the U.S. Both countries are dealing with dramatic declines in consumer confidence, and that lack of confidence impacts the intent to make large purchases, such as housing.
What is clear is the greatest minds in the world are not making accurate predictions... for example:
In March, Goldman Sachs forecast oil to hit $250 per barrel this year, they were wrong, and now they suggest it is going to $50!
In a Reserve Bank statement, oil was forecast at the end of 2007 to peak at $89 per barrel and trend lower for 2008... they were wrong!
In September 2008 a large and wealthy hedge fund run by Texas energy king T. Boone. Pickens lost $1 billion on a bet that oil would go up instead of down... he was wrong!
Harry S. Dent, a futurist that makes a living creating forecasts based on demographic analysis has been wrong on most of his predictions for the past 2 years including housing trends, oil prices and stock market booms!
No wonder the consumer is confused. My goal with these articles is to help you think for yourself and promote discussion rather than "push" projections to the public. I have my opinions, and I have clearly stated them in several articles, but at the end of the day you need to be comfortable with the decision you make.
Several years ago I was on a climbing trip in Nepal and had a similar discussion with a fellow climber when I noticed that the snow conditions were deteriorating badly at 19,000' to the point of being very dangerous and stated I was uncomfortable with the conditions. His answer was "it must be okay because everyone else is carrying on". That is not a smart way to protect a life or your major investment.
Simply put, as consumers you have to gain confidence in housing if the market is to stay strong. Just reading ‘doom and gloom’ financial headlines is not a great way to judge the housing market. As we have seen, most of this year's headlines have been wrong. After all, people buy and sell homes for lifestyle reasons. Births, marriages, new jobs, retirement and other major life events are all market drivers. Even in times of economic uncertainty, homes will continue selling when they are well-prepared for sale and priced right. Following the advice of your local REALTOR®, a full-service professional who knows market conditions and a home’s competition, is critical in readying a home for sale.
There are many reasons why Canadians should feel confident about the real estate market. There are some strong economic fundamentals in place here in Canada, so we are not subject to the underlying causes that first started the problems in the U.S. Further, there are some several government initiatives that are intended to either stabilize or stimulate the housing market. Multiple interest rate cuts have resulted in some of the most affordable real estate that we’ve seen in years. So, think positive, be confident, and capitalize on today’s changing real estate landscape. With the help of your local REALTOR®, you can take advantage of some great market opportunities, while other consumers sit on the sidelines with a wait-and-see approach.
Filed under: Real Estate, Market Conditions, For Sale, Announcements, Events, Industry, Point2, Finances, Buyer Information, Seller Information, Community Information, homes for sale in the okanagan, homes for sale in kelowna, house values, property for sale, canadian house prices, house price surveys canada, property for sale in kelowna, housing prices in kelowna, kelowna housing forecast, kelowna real estate, kelowna homes for sale, okanagan rural property for sale, mortgages, Real Estate prices in kelowna, real estate prices in okanagan, kelowna real estate prices, okaganan real estate prices, kelowna real estate developments, okanagan real estate developments, tourism kelowna