According to the Canadian Real Estate Association’s (CREA) chief economist, Gregory Klump, “Increasingly cautious home buyers and mortgage lenders means that active listings will take longer to sell in 2009 compared to previous years.”
Klump adds, “The national housing market is recalibrating due to weak sales activity. Supply will take time to adjust to lower demand, but sellers unwilling to accept offers below their expectations will remove their homes from the market. Fewer active listings reduces buyer choice, and in time puts a floor under prices.”
In other words, CREA’s chief economist sees the gradual shift from the current buyer’s market to a more balanced one, which will halt the decline in housing prices.
CREA president Calvin Lindberg is also confident that Canadian federal budget initiatives for homebuyers will have an impact later in 2009: “The increase in the Home Buyers’ Plan and the First-Time Home Buyers’ Tax Credit to cover closing costs are both important for first-time home buyers, and they are an important factor in an active housing market.”
In the US, the National Association of Realtors® (NAR) president Charles McMillan also believes that the home buyer’s tax credit is a critical provision in the recent stimulus bill, and that it will result in many home purchases in the U.S. during the coming year.
We can’t deny that we’re dealing with a poor economy and a slower real estate market, but it’s important to remember that home staging works no matter what the housing market is doing.
In fact, that’s one of the beautiful things about this business-it works in both a buyer’s market and a seller’s market. So while you may start your home staging business in a slow real estate market (which is the easiest time to start because prospective customers need our services that much more), you’ll be able to continue to grow your business when the real estate market turns around. And history has proven, it always does.
For more information on how the current economy and slow real estate market will affect your home staging business, download a copy of the free report “Ask Staging Diva: Can I grow a home staging business in a depressed economy?”
Debra Gould, The Staging Diva®
President, Six Elements Inc. Home Staging
Debra Gould developed the Staging Diva Training Program to create opportunities for others to grow their own profitable home staging businesses. There are currently over 1000 Staging Diva Graduates around the world. Debra encourages anyone concerned about starting or growing a home staging business in today’s economy to download her free special report: “Ask Staging Diva: Can I grow a home staging business in a depressed economy?”[tags] Debra Gould, Staging Diva, home stagers, home staging, home staging in a depressed economy, starting a home staging business, NAR, CREA[/tags]