12CWB 018 BabyCloseUp 2 300x168 What the Economists Are Missing in the Real Estate Market

What's missing from economists view of real estate?

If you have been following the news, you know the economy is getting better, unemployment rates are improving ever so slightly, consumers are spending a bit more while not going overboard and consumer confidence is improving.

And you are hearing many point out that the above factors are having an impact on housing. How much? A lot according to economists and those who study such things. But I noticed something yesterday that I find quite interesting.

I had the opportunity to visit Mississagua, Ontario, for the 2012 Coldwell Banker Broker Retreat and Economic Summit. Not the sexiest name I know, but still a pretty interesting event. The day started with a panel of four of the top economist in Canada speaking about the country’s economy and housing market.

Not only did I survive the session and avalanche of charts, but I actually liked it. Learned more than I ever did including how what’s happening in “Euroland” has an impact on the U.S. and Canadian economies. What global factors impact mortgage rates and how natural resources are keeping the Canadian economy strong as emerging markets and China have a strong demand. For almost two hours, the economists shared a ton in a way we could all understand.

But they did not talk about human nature. Nor emotion. Nor life events. The true reasons why people buy and sell homes.

I doubt there is anyone around who is weighing the decision to buy or sell today based on decisions the Italian or Greek government is making today. But clearly as economists study their potential ramifications and journalists cover that and other economic trends, let’s take it with a grain of salt.

No chart, number, stat or theory matters. We each have our own value system that is more important. And how each of us reacts in buying and selling a home is what really should be talked about.

It’s time for the numbers people to take a backseat to those of us defined by more than charts and graphs.