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What the Economists Are Missing in the Real Estate Market

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.

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.

 

David Siroty has been with Coldwell Banker Real Estate since 2004 and is responsible for all U.S. and Canadian external and internal communications, along with social media and cause marketing activities. In his role as VP of North American Communications, he is responsible for promoting the Coldwell Banker brand to media, staff and affiliated companies.

He was honored by PR News in their PR People Awards as the 2010 Lemonade Maker for his work in promoting the Coldwell Banker brand despite the challenging real estate market. He has worked in public relations for nearly 30 years in the sports, TV, agency and higher education industries. He also taught public relations for several years and is the author of a 2002 baseball book The Hit Men and the Kid Who Batted Ninth.

  • http://homesahwatukee.com/ Allen Henderson

    The economist are correct in the fact global happenings do impact our markets; however, the individual needs of home buyers and home sellers will ultimately drive our markets unless the global and national events price them out of the housing market or scare them away. There is a lot of pent up demand from four to five years of real estate market turbulence in our area. Interest rates are low, Active listing inventories are low. Pent up demand is high. Basic Economics 101 dictates that this is a perfect storm for sustainable, dramatic, price increases………………barring a major national or international disruption. Did I mention the dismal performance of our lending institutions in getting us into and very slowly out of the real estate market collapse? The banks are always a wild card and our potential nemesis!

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