Scared clients make for a very difficult turn around in the market

Greetings again everyone,

As most of you, I am struggling to get clients to believe that this is a great time to buy a home.  Although the national news has hinted at now is the time to buy a home, the best people talking about it are not making the main stream, big 3 news agencies.

I am still getting asked about the secondary loan markets and liquidity if you can believe that.  I am happy to talk about it, but the story is getting real old.  But the bottom line is that clients are still scared to move forward in buying homes.  Even the old stand-by of buying home using "Contingency" contracts has not settled potential buyers.  I know sellers are willing to accept almost any contract at this time, but the buyers do not understand that if you price your current home in the bottom 1/3 of the market, that they can sell their homes.

The national news has stated, and correctly so, that there is a 9 month inventory of homes on the market.  But this is only partially correct.  It depends on which market you live and work in.  I am fortunate that I live in an area that still has increasing home values, but the rate of sales has leveled off.  And like I said in an earlier blog, as it should.  The market was way too hot to sustain the prices or the rates of sales.  The baby boomer's have used their homes as banks and I personally believe, that is the reason for the abnormal market growth and price increases.

But we all know that the whole industry is guilty for causing this market correction.  From us agents to the appraisers. If someone needed an escalated appraisal  to sell their home, they got it.  But everyone one involved with the process of buying and selling homes has brought this correction on themselves and that is the bottom line.

So until potential home buyers get educated, and take the time to shop and negotiate lower prices, AND realize that now is a good time to buy. I think we are in for a rocky road until after the first of the year.  

I have even had clients that have moved to my area due to work transfers tell me that this is a horrible time to buy, that they are to fearful to buy, that.........   the list goes on and on.

So keep plugging away and stick with it.  This may be a very difficult winter season for those of us in the real estate industry, but it will change.  Persevere and educate your clients.  And sometimes, not even these efforts are enough.

Until next time,

Lu