I recently read a release from one of the major Real Estate franchises (I won't say which because I'd be inundated with hate/defensive mail) that states "Canada's real estate environoment is considerably more complex than it has been in recent years."
For crying out loud...
No it's not. The economic downturn in the US--and then by chain reaction--the rest of the world, has made it a little more difficult to sell houses in Canada. Our economy will suffer in relation to the US but Canadians have options our friends to the South don't have. We also have financial stability that will bounce back much quicker. And most importantly, the second largest demographic buying group in history is entering the marketplace (the X and Y generations). It's not complex, it's just different. Corporations don't do different very well, or at least, not very quickly.
The release states that "real estate trends in 22 markets across the country boasted average prices holding up remarkably will in 2008", despite 13 of their own reporting areas stated double-digit declines in home sales. This franchise predicts sales were down 15% last year. An official of the company goes on to predict that "with affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to...purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times."
Isn't it that tangible investment that has so many consumers worried at this point?
They go on to boldly claim that 11 major centres are forecasting to match or exceed 2008 home sales and 11 are expeced to slide. Talk about riding the fence!
If you are an agent in one of the major franchise organizations, you need to ask yourself if you're not being fed the corporate line. Worse, are you swallowing it hook, line, and sinker, just because they are still--at the moment--a strong force in the industry?
My message? Don't rely on your franchise (the very word meaning they exist because of you, not the consumer) to explain what's going on out there. And for heaven's sake, don't assume they're accurate. The corporate line has kept many a large, slow moving company alive. The big RE franchises are no different. They don't need the consumer to stay afloat, they need fee-paying agents. Yes, it's in their best interests to "influence" the consumer with their awareness advertising, but much more attention is paid to ensuring their stable of agents remains faithful and don't quit in the face of hardship. Thus the "complex environment" they portray: One they can provide training, programs, advertising, etc., to counter-balance and "provide insight into the changing marketplace."
I'm not saying their being decietful. Just corporate. So find out for yourself. Read everything. Surf the internet, sign up for RSS feeds from news groups that are on top of the industry (not just your franchise), and, most importantly, listen to your clients. After all, they are the only ones who really know what they're doing.
Robert J. Morrow is editor of www.HamiltonHomeReview.com, an online real estate magazine serving Greater Hamilton, Ontario. Click here for a FREE SUBSCRIPTION sent to your email monthly. Click here to receive new Hamilton area listings in your email daily.
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