In the last week we learned more bad news about the economy and specifically pending home sales prices. If you are paying attention to the economic indicators you know that the selling prices of homes are continuing to be slashed. One in 4 homes across the U.S. for sale July 1 have reduced the selling price at least once according to Trulia.com.
On the bright side, the housing stimulus plan it is taking shape, and each day a little more detail is revealed. For the market to start making it's move their are a couple of other indicators that need to fall in line simultaneously, job losses often referred to as non-farm payrolls and consumer confidence. It's like a reverse domino effect, once they start moving, GDP will start moving, when GDP starts moving, even more consumer confidence improvement and investment grows. On these fronts, there are Administration efforts to jump start. We will start to see, if nothing else, a reduction in the rate of growth of the bad numbers. Job losses may still be high, but at a lesser rate, and with that consumers will start to feel better about their futures.
The reasons to stage a home remain. When the economy is declining there are generally fewer buyers and you have to fight for the ones out there. A staged home is a clear advantage. When the economy is rising, you have to compete still, and a staged home remains a clear advantage. The year 2008 was clearly a bad year and yet the Real Estate Staging Association reports days on the market staged vs. unstaged (same home) improved a staggering number of days.
In my own area of the country, Asheville, NC, home sales are up, but at a reduced price. It is encouraging even with the caveats. Keep your heads up, recessions always end!
Eileen
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