Homes Sales and Shopping Sales – How Are They Related?
If you had your TV on lately, you have heard over and over again the reports saying that the holiday sales have increased compared to last year. Is this really true or are they just hyping the public to get the shoppers to open their wallets?
Home sales are still on a slow decline in price and most people who I have talked with over the holidays or even now say that they have cut their holiday and daily spending way down. Their fear is that the housing market is not recovering like experts predicted, unemployment seems to still be at an all time high, and gas prices have increased through the roof over that past month. In Minnesota, some places are charging over $3/gal.
So how does all this related to the shopping malls?
I can say personally that I have been out shopping lately before the holidays and just here recently and people seem not to be carrying the load of packages that I typically have seen over years past. Are they buying more expensive smaller gifts or has the gift card finally taken over? Here is what I have heard from some:
“I get money from my family, so there is no shopping required & I get more when I shop after the holidays as the sales happen then”
“It’s just me & my spouse so we just buy something big like a new TV or car for both of us and don’t exchange individual gifts”
“I do all my ordering online as there seems to be more deals via the internet”
How does this relate to the housing market?
Home sales have struggled since the tax credit for buyers expired. There is much data to show that people are not secure enough with the economy the way it stands today to purchase a new or existing home. As mentioned earlier with unemployment at an all time high, talk of yet MORE foreclosures to hit the market, mortgage regulations changing & requiring a buyer now to provide some sort of down payment sales have declined. With the decline of sales, comes the decline of prices to get the homes that are on the market sold. Most sellers on the market now are at their bottom line for an asking price. So indication shows that if people are not in the malls they are not looking at homes either.
Standards & Poor have just reported that homes sales in the major cities have dropped dramatically and expect to see home sales continue to fall through next year.
How does this impact me if I want to sell my home?
Make sure it sparkles inside and out. Think of it as if you were going out shopping. There are two stores side by side and both carry what you are looking for. However, the one on the right is dark, dingier and you have heard others say they are way over priced for their goods! What about that one on the left? Well, let’s look at it, when you walk into this shop there is someone there to great you, its bright & you feel the warmth when you walk in the door, everything here sparkles & shines and the prices are incredibly appropriate for the items they are selling. Which one of these shops would you buy from or tell others about? This is the way you need to think in a market like we are facing in order to sell your home.
Make it sparkle, warm & welcoming and price it accordingly. This is not the market to be playing the start high and work my way to a sale. THE SPIRITS TO MOVE hit people at some crazy times so be sure your home is ready when that mood hits.