The Battle of the Century- Consumer Confidence versus Economic Fundamentals
Many of you have commented that the "facts" in our current real estate market in Barrie and Orillia indicate a slowing down in home sales and price increases. Prices in some areas (Barrie's south end) have declined anywhere from 3-10% and homes solds has declined to 2006 levels. Yet in many recent articles we have made comments on the strength of the economic fundamentals. So what's going on?
This article can go on forever to re-explain fundamentals, but in a nutshell, consumer confidence is a non-fundamental factor that influences the market. That is, consumer sentient definitely affects the real estate market. How we feel the economy is doing, what we think the future holds bears great influence on real estate prices. Weather or not these "sentiments" are based on facts is inconsequential. They affect the cyclical nature of real estate.
But this is where (again) the educated real estate investor can move ahead of the pack. It seems that consumer confidence prevails over the economic fundamentals in our present condition. The general public's view of the near future has dimmed. This unfortunate prevailing view has affected real estate and reduced home prices in general. This is a time educated investors (NOT SPECULATORS) can find fantastic deals. Investments and decisions made in real estate now can show incredible foresight and business courage. Especially when we look closely at the LOCAL economic fundamentals.
The buying and selling of real estate in Barrie, Orillia, Midland and Collingwood will continue on weather the market is heading up or down. "Professional" real estate investors will tell you that you can make money in any "cycle" of the market. And once again I put my faith in the Fundamentals of the local market...not in the prevailing negative sentiment
Mark Vosylius
(705)-812-1033
Email: mark(at) manainvestments com
Mana Investments - www.manainvestments.com - Learn techniques and strategies on real estate investing as well as home ownership in the Orillia, Barrie, Innisfil, Collingwood, Midland areas. We specialize in using RRSP's as a 2nd mortgage for real estate investing as well as joint venture agreements and assignment real estate contracts in Ontario
Homes by The Owner - www.homesbytheowner.ca Helping Investors buy and sell real estate properties that cash flow in Simcoe County and surrounding Oro-medonte areas
The Six Steps to Success - www.sixstepstosuccess.com - Get to your financial goal quicker...Helping you achieve success in goal planning.
;)
;)
