most of the people up here who are renting have been displaced from foreclosure...so they can't buy...

I agree with you, i have 3 potential clients on the fence and just don't understand the benefits of buying!  They keep saying they're looking to maybe rent for a year and then buy.  that's a year's equity down the drain.  Here in San Antonio the houses have always been affordable.  I just don't understand.

Frank

Konnie,

The people down here in South Florida who have lost their home's cannot rent here, b/c if you run their credit, they get denied.  So they are living with relatives, where there is really not enough room...the situation is sad.

Frank,

I know!  The problem is, they listen to the new's and reporter's who know nothing about the market, who are scaring everyone.  Now is the best time to buy. Prices are low, deal's are good, seller's are negotiable, and the interest rates are way low...

The state of the economy. There is absolutely NO consumer confidence. The peresidents approval rateing is the lowest it has eve been. The FEDS continue to lower rates to free up credit card spending limits so people can shop  more, but they are affraid to. About 62% are going to keep the tax stimuless. People call for rates....and when the answer is 6% with perfect credit and 20% down, they say they could have gotten better than that last year, and yes they could have. People don't understand that the rate means nothing if the payment doesn't fit your budget. Yes, prices are very low, but people don't ask what the payment will be on the same house that was 385,000 last year, but only 335,000 this year. They still talk about the rate and not the bottom line. People call me every day to ask about the rate and then get upset that it isn't really going down, even though the FEDS lowered the prime, because they think that lowering the prime rate will lower the mortgage rates. But it has nothing to do with mortgage rates, and that is what people don't understand.

 People see that it will get worse before it gets better. They feel that if they rent for a little while and the values drop again, they will not be upside down on their investment. They will wait unti values start to climb and then they will not be able to get as big of a house.  Catch 22.

The people I have talked to are afraid the market is still declining and don't think they should buy now. I don't agree but perception is from the media and until it is changed we will continue to see this attitude.

But houses won't drop much more even in some bad areas. If they make a lower offer, they are already ahead. Show them the MATH!  The current interest rates and the current price equals the house payment. when either goes up, so does the monthly payment. Buying now is a great time. Never has there been a time in the last 30 years where home prices fell, and rates were low! Would you buy a stock just because everyone else has.....it's already over priced when everyone else has one. Warren Buffet doesn't buy stocks that everyone else has, but everyone want's to buy what he is buying. That drives the price up and then he sells. So the price goes down and others get scared and sell low because they are afraid of loosing more. Emotion should never be involved in a financial investment....but it is when people are buying a home. Isn't buying a home everyone biggest Financial Investment?

Karen you are spot on.  It's sad really, if people let us as Realtors do our job and keep them up to speed, we wouldn't have this problem.

Frank

A+, Shaun, Terry, and Frank,

You are all so right with your comments.  It is a shame that the media, and some of the negative commentators (who probably live in nice homes somewhere) continue to cause everyone to think they shouldn't buy now, in fact, they should!