Global Real Estate Highlights

A few weeks ago I went to IKEA to get some few items for my children’s room. I was surprised to see how packed it was.  I’ve never seen that much people in IKEA even during the clearance season.  I’m pretty amazed that a lot of people are still buying things, even if the news is all about tough times.  I was even observing if people are just there to browse or to really buy.  Based on my observation, people are spending money to buy things in IKEA and some are even hoarding things from IKEA.  I’ve seen a lot of carts packed full and some cars stuffed with items (with the only space left is the driver’s seat)! I feel sorry for some of the retailers near IKEA.  Most people seem to go to that particular shopping complex only to shop at IKEA. However, I’ve seen some stores offering some sale items that benefit from the crowd who go shopping in IKEA. 

In the current market situation, people still spend.  However, many are looking for great deals, bargains and value for money.  Some businesses maybe losing money, but some are growing their market shares.  The real winners during a downturn are the discount shops, bargain centers or any establishment offering low-priced items.  People tend to flock to them and veer away from buying luxury items.

The same applies to real estate.  There are still buyers in the market.  However, most are looking for good deals and bargains.  Gone are the days when people are motivated to buy based on the look and feel of the house. Having the right price is one of the main considerations of most real estate buyers now.  During the real estate boom, “Monopoly” is the name of the game.  In the current real estate downturn, “The Price is Right!” is the new name of the game!

Photo Source: (1) flickr.com by OiMax, (2) flickr.com by milele