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Thursday, June 30, 2011

An update on the housing market

The mortgage meltdown and the bubble in real estate prices are widely thought of as two of the major causes of the recent recession.  So when the Wall Street Journal offered this story about the current state of the housing market, I thought I’d share it.  (Click here to see the story.)

Implications:  The challenge with articles like this, of course, is that the housing market tends to vary widely by region.  But it’s nice to hear speculation that a bottom may have been reached with declining home values, even if an upward turn might be a ways off. 

It is important to note that while home buyers do great things for the economy, home keepers do, too.  If you own a home that is worth less than you could sell it for, aren’t you a prime customer for the kind of improvements that make it a pleasant place to live?  I’m thinking about major enhancements like new floors, granite countertops, and home theatres.  People who are “stuck” in their current house because of the real estate market are still likely to want the home of their dreams.  It’s just that getting it might involve spending on their current house, rather than moving to a new one.

What kind of opportunity might that perspective create for your company, product or service?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

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