According to the U.S. Department of Agriculture, Food Price Outlook for 2008 for all food is projected to increase 4.5 to 5.5 percent, as retailers continue to pass on higher commodity prices, for beef, poultry, eggs, dairy, fruit, vegetables and wheat, and energy costs to consumers.
Cathryn Creno of the Arizona Republic wrote an excellent article on AZ grocery stores and how manufacturers are scaling back the sizes not reducing prices so consumers do not feel as much of a pinch in the wallet. Here are a few examples Ms. Creno cites.
- Cheerios shrank by 1.5 ounces
- Scott toilet paper is down 0.3 inch per square
- Breyers reduced the size of ice cream cartons from 1.75 quarts to 1.5 quarts
- Wrigley announced they will offer gum in 15 stick packages instead of 17 sticks
This type of "downsizing" is also becoming more and more evident in real estate especially here in Phoenix, Scottsdale, Tempe, Fountain Hills, Peoria, Glendale, Paradise Valley, Desert Ridge, DC Ranch, Troon, Grayhawk
Here are 5 examples of real estate Downsizing:
- Some Builders are selling homes for less price with less upgrades. Passing on saving to the consumer; just with less 'cereal' in the box.
- Lowering prices and offering less buyer incentives.
- Buyers are purchasing smaller homes with less space in order to save energy, upkeep, tax and loan costs.
- Short Sales, Foreclosure and REO , Bank owned properties are less expensive and buyers are now willing to pay a lot less and fix up themselves in order to save money versus buying retail.
- Realtors, mortgage lenders, builders and sellers are more competitive with rates and fees in order to facilitate transactions for buyers and sellers.
Downsizing can be a good thing in real estate. Please, just remember to always read the 'packaging' so you know what you are really getting. Good deals abound if you look prudently, patiently, and close enough.
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Copyright © 2008 By James Wexler, All Rights Reserved. *Food Products Reduced in size - Will homes in Phoenix Scottsdale follow ?*
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Hi James ... In my area, I have seen evidence of downsizing among builders ... some smaller homes being built and the standard "mansion" with a lot less opulence inside. Perhaps, the best example is that more buyers are looking into existing homes. Seems to me it had to happen, and it is a good thing for today's buyers ... more options.