How the Law of Supply and Demand Affects Home Stagers – Part 1
How the Law of Supply and Demand Affects Home Stagers – Part 1
Here’s how it works:
When demand exceeds supply, prices rise.
This is what we saw in most real estate markets for approximately the last 10 years.
Fueled by easy credit, low interest rates, high real estate appreciation, and the general feeling of wealth and abundance that came from a rising stock market, there were lots of buyers chasing a dwindling number of homes.
Because demand was higher than supply, homebuyers felt pressured to make quick decisions, and bidding wars were common. This drove up prices even more.
Home sellers held the power in this situation, thus the term “seller’s market.”
TV shows and articles about house flipping and home staging became popular and increased the general awareness of the difference staging can make. Despite being in a hot real estate market, the home staging industry grew as savvy sellers and property investors looked for ways to make even more money when they sold.
When supply exceeds demand, prices fall.
This is what is happening in today’s real estate market.
People who got in over their heads with easy credit have been forced to sell or put their homes in foreclosure. As banks absorb their losses, credit becomes tighter. Homebuyers with good credit ratings, who normally wouldn’t have any problem getting approved for a bigger mortgage, are having a harder time getting loans, which further reduces demand. That’s why government plans are aimed at freeing up credit again!
A slow real estate market is called a "buyer’s market" because there are lots of homes for sale and fewer buyers fighting for them. The perceived pressure to make a quick buying decision is gone.
In part two of this article series, learn how this law of supply and demand affects home stagers.
How the Law of Supply and Demand Affects Home Stagers Part 1 - To learn more about this author, visit Staging Diva's Website.
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In a slow real estate market, sellers are desperately looking for ways to sell faster and for more money. They need home staging services now more than ever before and it comes down to the simple economic laws of supply and demand.
Here’s how it works:
When demand exceeds supply, prices rise.
This is what we saw in most real estate markets for approximately the last 10 years.
Fueled by easy credit, low interest rates, high real estate appreciation, and the general feeling of wealth and abundance that came from a rising stock market, there were lots of buyers chasing a dwindling number of homes.
Because demand was higher than supply, homebuyers felt pressured to make quick decisions, and bidding wars were common. This drove up prices even more.
Home sellers held the power in this situation, thus the term “seller’s market.”
TV shows and articles about house flipping and home staging became popular and increased the general awareness of the difference staging can make. Despite being in a hot real estate market, the home staging industry grew as savvy sellers and property investors looked for ways to make even more money when they sold.
When supply exceeds demand, prices fall.
This is what is happening in today’s real estate market.
People who got in over their heads with easy credit have been forced to sell or put their homes in foreclosure. As banks absorb their losses, credit becomes tighter. Homebuyers with good credit ratings, who normally wouldn’t have any problem getting approved for a bigger mortgage, are having a harder time getting loans, which further reduces demand. That’s why government plans are aimed at freeing up credit again!
A slow real estate market is called a "buyer’s market" because there are lots of homes for sale and fewer buyers fighting for them. The perceived pressure to make a quick buying decision is gone.
In part two of this article series, learn how this law of supply and demand affects home stagers.
How the Law of Supply and Demand Affects Home Stagers Part 1 - To learn more about this author, visit Staging Diva's Website.
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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