Tuesday, March 3, 2009

Real Estate Markets and the Placebo effect

There is something that we have all heard of and that is the Placebo Effect. If a person is not feeling well or believes that they have a serious illness, they will visit their doctor and the doctor tells them that if they take this pill for a couple days the symptoms will disappear and they will begin to feel better. They have a strong belief that they are sick and that there is something wrong with their bodies and this is verified by the symptoms that they are feeling and expressing. Then they build a new belief based on what the doctor has told them. That new belief is what they want or desire and that is simply, to feel better. They now believe that this little pill will make them feel better. Suddenly shortly after injesting the medicine the symptoms start to disappear. What really happened is that the doctor examined the patient and with his knowledge and experience and a little bit of common sense came to the conclusion that this patient was fine based on all regular indicators. He ascertained that this person/patient needed to believe that he was giving them a solution. "It is all in their head" so to speak. Our beliefs are so strong sometimes that we can actually effect our bodies and almost "create" an illness or the symptoms of an illness.
Well let me ask you this......."is it possible that the reason that the Real Estate Market is a little bit slower, and prices are coming down a little, possibly from the Placebo effect of the media?" After all they are the trusted source. These specialists and analyzers come on the 6:00 NEWS and tell us about all the troubles of the world and suddenly in a little town of Chilliwack BC we meet the statistics exactly. We are meeting the expectations of the media sources exactly. We are experiencing the symptoms and believing it and feeling the effects of it. It feels like a recession because they are calling it a recession.
Here's another point. Let's say you wake in the morning and you feel fine. You wife or husband says to you..."Oh honey, are you feeling ok? you seem a little discolored" you answer "No I feel fine". You head to work and the person in your carpool says "Wow are you feeling ok? You're looking a little sickish" . Then you arrive at work and your secretary says to you.... "Good Morning.... Oh are you sure that you should have came in today? You look like you're sick"....etc and this goes on for the next couple of hours of the day. I am willing to bet that you will be heading home early that day and suddenly take on the symptoms of being sick. But you woke up in the morning feeling just like any other day. When it is expressed to you enough times by trusted people, people that you see everyday, it will creep into your mind and you will begin to take on the symptoms that they are referring to.

Now what if someone with enough clout came on the TV screen and could reach out into your living room and give you a 'smack' on the cheek and say "Wake UP!!! Take a look around you!!! Everything is fantastic" .
As of today the prime mortgage rate is now 2.5%!!! This is the lowest ever!! Even a prime plus 1% loan will get you to 3.5%. What? Are they going to start paying you to use their money? Obviously not, but this is ridiculous. Prices are down an average of 15% from 18 month ago and interest rates are the lowest ever. There is a lot of inventory out there and some Sellers have to sell. What better climate can there be for a Buyer. Remember, once you sell you get to be a Buyer. This is the ultimate Buyer's Market!!! People wake up. We don't have any car companies laying people off. We are a hustling and bustling economy here in Chilliwack BC. We know that there are people ready to buy because when the prices come to a point that you can't ignore any longer then they come out of the woodwork. Garrison Crossing has sold over 12 units in the last 2 weeks. The Flora apartment building on Mary Street has sold over 1/3 of the building in 30 days. Prices increased over 99% since 2002 and have only dropped 15% and I believe that we are bouncing on the bottom now.
Now let's analyze as if we are the doctors: Interest Rates? Lowest EVer. Ok now let's check the pulse of employment. HMmmm yep that is still quite low. Any new events coming to the area? Oh yes......THE 2010 OLYMPICS!!! Yes well. Let's take a look around. Cough for me...Clean Air and Water. Mountains. Lakes. Ocean. 1 hour from the Big City - Vancouver. HmmHmm, Yes that is the most beautiful City in North America. Yes I agree. Oh really? A new University is constructing right now. The RCMP has relocated their training facility to Chilliwack. And Yes. the Justice Institute is there as well. What's that? Companies are currently building facilites that will employ hundreds of people in the Chilliwack area. Nice. Oh I see. The City of Chilliwack itself has no debt at all. Wow that is impressive. Oh yes and I heard about the Evans Road overpass that is currently under construction. What's that? You have a local WHL hockey team as well - The Chilliwack Bruins? Oh is that right. A new Entertainment Arts Center is under construction right now. Oh is that right beside the new Landing Liesure Center and the new Prospera Center which is right across the road from the new Football field? Wow.
Well it seems to me that you will be feeling pretty good pretty soon. Just take this little (sugar) pill and you should be feeling fine any day now.
Come on people - - - - go to our website at http://www.happyhomesbc.ca/ and check out some videos that talk about the Chilliwack area and also we have a new video speaking about "The Falls Golf Course and Resort". Looking forward to meeting you.

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