If there's one question REALTORS are getting asked more than usual these days, it would be, "Do you think the market is going to continue to decline (or tank as some people put it).
The level of anxiety in their face is in direct correlation with which way they want the marekt to go. Buyer's look hopeful that it will continue to fall, and of course, seller's are freaking out that it will.
Not to worry, not to worry. If you are selling your house and you are going to be buying again, the percentages are in your favor that you will be purchasing a home in a depressed market and getting your new home at a reduced cost. If you have to get a higher price than the market will bear because you purchased within the last two years and owe more than your home is currently worth, you need to pull it off the market and hang in there if at all possible. Why?
Buyer's are convinced the market is going to continue to decline. Picture a corral filling up with buyers. The corral is getting more and more buyers in it everyday because they are all waiting, waiting until the market hits bottom. They are asking every REALTOR they know to look into that crystal ball we all carry in our pocket and let them know when it's going to hit bottom.
Well buyers, a buyer in my market purchased a brand new, never lived in, freshly painted, with new everything, home last month for $265,000. That's a screaming deal in my book and probably any other agents as well. Bernanke is hinting that another rate cut may be needed to spur on the economy and seller's are freaking out and taking low offers. My markets list price/sale price ratio of 80.75% for October means seller's are taking hefty price reductions in order to get out of their home.
What does it all mean? I would venture to say that after the first of the year, buyer's are going to get tired of being crammed into that corral together and will break free of their need to find the bottom, or, be convinced it's here--with the bonus of an interest rate reduction--and they will WRITE OFFERS. The warier buyers still sitting in the corral will see that the home they were going to write an offer on when the price finally got reduced to $xx dollars is now gone! They will jump in before, "All the good ones are gone," and prices will start to go back up.
If you have identified the home that will meet your needs and make you happy, but you are waiting for the market to hit bottom, you may want to rethink your "waiting it out" philosophy. In my market, NOW IS A GREAT TIME TO BE A BUYER.
Del Norte County...The Other California
Copyright © 2007 Fran Gatti/Crescent City/Del Norte County...The Other California | All Rights Reserved
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