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