The desire to keep up with the elusive Jones family, whoever and wherever they may be, is dissipating. No one needs to read an article in today's New York Times to realize there is a major shift in the buying habits of the average and not-so-average American. This shift is occurring across income and geographic lines. If you would like to delve deeper see Conspicuous Consumption, a Casualty of Recession by Karen Ann Cullotta contributed reporting from Chicago, Gretel C. Kovach from Dallas, and Rebecca Cathcart from Los Angeles in today's paper.
Note the quote used by the reporters to illustrate the current phenomenon is not new; it was taken from a book written eleven years ago, but the statment stands fresh today. " 'Any sharp decline in consumer spending will feed on itself,' said Juliet B. Schor, an economist at Boston College and the author of The Overspent American: Upscaling, Downshifting and the New Consumer(Basic Books, 1998). Typically, people spend when those around them are spending, but in a downturn, the need to compete evaporates. 'You can stay right where you are without falling behind,' Ms. Schor said."
I'm left with the following take away thought. In most instances, whatever I'm selling must meet a need, not a want, of the consumer. The Joneses are no longer driving the housing market.
I only need to analyze a few past transactions to determine the driving force of the client:
Client No. 1: Divorce and Downsizing-- he kept the pricey sports car but his castle is now a cottage.
Client No. 2: Divorce and Downsizing--she loves her fresh start and smaller quarters.
Client No. 3: Moving investments from stock market to real estate--think beach house and big view! Its value is holding up better than the Dow.
Client No. 4: Buying positive cash flow investment property--yes, we have a few in California.
Client No. 5: A new addition to the family--babies require a lot of stuff--sometimes even a new home.
Real people with real needs--no keeping up with the Joneses involved.
Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333 / Office Phone: (310) 831-0800
South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach.
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