Market (property) Maturity: Effective and Efficient Information Dissemination, a Crucial Factor.

 

The Smithsonian held sway an economic theory which followed the classical laissez faire approach as propounded by Adam Smith. The summary of this approach is that markets are inherently self-correcting. In essence, if there were any disequilibrium in the market, the ‘’invisible hand’’ would simply adjust the markets and restore it to a state of equilibrium.

The postulation of the this theory by Adam Smith is perhaps screwed to the basis of his realisation or discovery that markets and their maturity is ever fully stretched   out although some other theories in succession, like the Keynesian economics, the Chicago school of thought, the Monetarist school of thought among others have come out quite a modified or different theories to that of Adam Smith as it is often a common practise in the scholars’ world to press forward researches however even if the end result equates to the  beginning.

The general market of anything is always matured and its mechanism is fully stretched out however uneven it may or seem to be. What is most perceived as premature is hinge on the ignorance to the fact that maturity in market sense has a direction it flows to or which the weight tilts to which account for the unevenness in the maturity of the general market.

Definition of market value by The Royal Institution of Chartered Surveyors(RICS) is the estimated for which a property should exchange on the date of valuation between a willing buyer and seller in an arm’s length transaction in after proper marketing wherein  the p[arties had each acted knowledgably , prudently and without compulsion  That is when all elements involved before any transaction from inception to conclusion have undergone a chemistry reaction necessary for the give birth to the right value. Thus, like a chemical reaction, a catalytic can as well play a role to hasten such reaction giving the same result as it would have had without it.

The scenario worth depicting the maturity of any market is like a fan which when it is on, the wind blows outward and perhaps evenly. Moreover, the vents or other object in this light are capable of directing the wind to which side it blows. This scenario is quite similar to the market environment that surrounds an object or property.

Take for instance properties, like any other object market good or commodity, are exchanging hands in the market daily or are capable of doing so  but the frequency are ever dynamics(market- maturity unevenness) owing to different factors that play a role. On one hands, it is an inherent feature of a property to have a slow transaction pace due to the fact that it is quite capital extensive therefore impairing on the maturity of its sphere, a fraction of the whole market. However, an effective mortgage system of other funding means stabilizes the wholeness of its maturity as seen in most developed countries.

The reason behind frequent dynamism in the property, especially when transaction pace is slow, is that such property have not been able to radiate properly and intensively their light of market-maturity or blow intensively and widely their wind of market-maturity which is basically information.

Like in the world of physics when two objects collide, it could either result in an elastic collision or an inelastic collision. Inelastic collision implying that after the interaction created by the collision of the two objects, they are stuck and move at the same velocity while the converse applies for elastic collision. Same goes in the world of information. Information can be likened to such objects, capable of collision which could likewise result in elastic or inelastic collision. That’s information should flow from ends, buyer and the seller side and should collide each other with a force, mass complementary to each other and direction capable of allowing them to move together in the same direction and velocity- Inelastic collision.

The world by default, perhaps ignorantly, tilts away from the truth. As known to most, what the common practise is, is for sellers to always advertise because they are more or less profit driven, i believe. I choose to ask at this junction, ‘is it wrong for a consumer to advertise because he or she is need-meeting driven? Making a balance or equilibrium in any system or a life is quite continuous, ever demanding and always useful. Like i said in relation to the physicist, information are like object of collision and the most profitable is when the two objects roll at the same and direction.

If the weight of information responsibility is tilted to the seller, then there is an imbalance which always creates for higher incurred cost, ineffectiveness and inefficiency among others in a process. Therefore, having a place clients walk in and they readily meet their needs as there is a relative balance of information system between sellers and buyer would be of utmost necessity.

The advancement in technology in view of communication in the nation has tremendously increased over the decade. Although, yet to be imbibed in our practises here, property are now being videolised on official websites, social sites and so on. The question which should be asked here is ‘how close is a client in need of a specific property near to an answer (information) of such?’

The, before now, usual practise is for the client to go round such area he desires to reside or to tell his friends to be on the lookout for ‘’to- let’’ boards on houses. This culminated into the era when the profession of estate surveying and valuation gained dominance and credibility and people who could afford a price tag of agency or management fee patronised them. The advent of quacks in the estate surveying and valuation profession took the same form. Till this day, the typical process for a person looking for a property for whatsoever purpose is still through a physical scout, agent and to some extent through property magazines and websites. Although almost all property companies do have a website and there are even some online sites for properties, many people are yet to give them a face or thought. Could it be that the faith in online property advertisement is lacking in our nation?

From economic history, the congestion of many middle men in any chain of transaction is always producing different vices ranging from high cost of transaction to long period of transaction conclusions, to malicious and fraud susceptibility and a host of others. Although the advancement in technology is laudable in the sense that it has created much avenue for the practice or need for middlemen to be curbed because customers can directly search online for contacts having what they need.

It should be the vision of any economy to press for buyers dealing directly with sellers and a professional to impartially protect the interest of both parties may be required or desired. Information relating to a need of a consumer should be at his or her finger tips to play with. Thus, a system capable of providing and enhancing this should be mapped out, orchestrated and mechanised in earnest.

The importance of an effective database has for centuries being realised by the developed countries. Although the motives that drove that then was quite social. Nowadays, the economy is in the fore-line of those enjoying such action, like investment, that was then done.

Under the scope of the property market in Nigeria, we are yet to have an effective and genuine data base. Statistics tools that have metamorphosed over time are able x-ray trends of property market and characteristics of any particular property, thereby drawing accurate readings and reliable conclusions as to the present and future of any property type whatsoever. Further derivable from this are indices and market trend which can be digitalised and connected nationally and beyond. Although on the contrary, a traditional feature of the property market is its unlikeness to the stock or money market but by this process the property market can be quite relatively efficient and quite dynamic like the formers.

The money and stock market often take predominance role over the property market because of our static approach in rocketing the property market to such height and level. The ultimate future of the property market is to have its trend very much like the stock and money market yet more secured and an edge of inflation. Bring all the three markets, money, stock and property, to the same level of functionality, trend and operation shall equate to optimum economy efficiency. The engaging in intensive and effective data collection capable of being graduated to indexing and digitalising the property market which shall in turn be seen timely on the computer screens, online, websites, newspapers and so on shall give course to consumer to draw near or nearer to its information and the need for it.

@yemilluminati

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