Friday, May 06, 2005

Fewer Consumers Want To Buy

The AP-Ipsos consumer confidence report is out and the findings will make flippers nervous. "A measure that tracks consumers' feeling about making a purchase, saving and other investment decisions dropped to 75.8 in May, from a reading of 87.4 in April. That contrasts sharply with May of last year, when this investment barometer clocked in at 93.6."

That's down 13% in a month and 19% year over year.

5 Comments:

At 1:44 PM, Blogger John Law said...

most people won't care, because they've never even heard of the statistic. they see whats around them and what's happened- and that's that housing is hot and will be hot, forever. housing always goes up, after all!

 
At 3:10 PM, Anonymous Anonymous said...

The SJ mercury is running a poll.
http://www.mercurynews.com/mld/mercurynews/

 
At 7:31 PM, Blogger goleta said...

Until China's RE bubble pops, there is more money to be made flipping Chinese properties. You gain in two folds: the increase in property value in yuan multiplied by the appreciation of yuan to the dollar.


China's own RE bubble:

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050502/RPROPERTY02/TPRealestate/

What China may do with its currency

http://www.nytimes.com/2005/05/07/business/worldbusiness/07yuan.html?

It'll be interesting to see how China handles the inflow of hot money. So far hot money has always had the upper hand over the governments.

 
At 7:34 PM, Anonymous Anonymous said...

Until China's RE bubble pops, there is more money to be made flipping Chinese properties. You gain in two folds: the increase in property value in yuan multiplied by the appreciation of yuan to the dollar.


China's own RE bubble:

http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20050502/RPROPERTY02/TPRealestate/

What China may do with i

 
At 8:27 AM, Anonymous Anonymous said...

John, this just shows that why the pricing of RE is so inefficient.

At some point (like now in some markets), there will be a marked decrease in transaction volume. RE agents will start to ask sellers to reduce the prices. After all, no commission if there is no sale. Words will get out and the sentiment will make a 180 degree turn. I have seen this happening in Hong Kong not long ago.

 

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