The decline of consumer confidence can be attributed to some significant reasons
. The diminishing parameter from the month of September was noted based on the surveys done by several reputable private research groups. The intention of most shoppers to buy luxury and other less important items alike went down simply because buyers prioritize necessities. After the economic downfall, consumer's awareness of the spending habits become apparent to make sure that the available funds last longer. Many business sectors are affected by this drastic change. Included in the list is the real estate investment.
Potential investors have become fully attentive about their expenditures and are not ready to take risks. The affordability of the houses/property matters the most. Generally, the purchase of the land and buildings rely on average selling price that is preferably below the market price. This approach will not surely affect the spending limitations for other much valuable expenses.
Consumers also make projections for future spending. Suddenly giving away the buyer's savings when there is an available home for sale does not guarantee financial solidity in the future. Instead of purchasing immediately, consumers hold on 5%-20% of the money intended for the purchase of the sold home. In the end of the selling party, there should be the stability of price. This assure the buyer not to worry about economic difficulty in the future.
Most especially, there should be the existence of a consumer protection program that will regulate the mortgage required by the lender. There should be compassion and understanding for the borrower and financial institutions should become lenient with the policy governing mortgage application. This will not discourage the buyer since there is an availability of enough funds.
Consumer confidence should rise up once again. The market for any business sectors mostly depends on the active participation of buyers. Also, the burden of perpetuating the market cycle by encouraging purchasing does not lie mostly on the producer. It is everybody's responsibility.