This is the best time in real estate to buy a home --
Interest rates are still low, inventory levels are high, and prices are stable.
So why are buyers still waiting?
The media with its continuous doom and gloom scenarios aren't helping. On the CT Shoreline we are seeing some pick up in activity, but homes going on deposit are still lagging. Many are trying to time the market and may be burned as a consequence.
What are you seeing in your markets?
TeamShoreline
(203) 245-HOME
I wrote a post yesterday that suggests we should buy a a sign it's time to buy, so rather than ask about "customers buying" Realtors should be buying and that will surely signal it's time to purchase.
Steve
I am seeing the same thing in the Miami area. The media is constantly coming out with a new report or expert that sees a further 25 to 30% drop in the market.
I overcome it to some degree with some buyers by showing them the real market statistics. In miami beach, for example, the inventory (supply) has been pretty much the same for the past 15 months, whereas the sales (demand) has gone up steadily since December.
In other areas of Miami, things are not so good. It really varies depending on the city, neighborhood, and in many cases, the building for condos.
Here in Massachusetts we are experiencing the same market conditions as you have explained and the same type of situation. Here, things are moving slow due to all of the bank owned properties and the short sales. They are very slow to answer offers, thus causing things to close a lot slower. Also, we have noticed some delays in underwriting. We've been waiting over 2 months on a handful of closings for some of these reasons. I'll be happy when all of the bank homes are gone!
Prices seem to still be coming down some more in my area. I think a lot of people our buying though. There are just a lot of home for sale in the Minneapolis and North Suburbs area so its hard for some people to get motivated to do something.
Our prices here in Florida have dropped back to 2002 levels...eeeks...our property here is very attractive. Our market here has improved and most of my recent buyers have been cash. I think people may still be struggling with getting financing.
I also think that it is the same thing that happened on the upswing...the cocktail party talk is all about how now is not the time to buy. So even if people are ready, willing and able...they may hold off because they do not want their friends and family to say I told you so if the market continued to decline.
As soon as the media starts to say "We have bottomed, now is the time to buy" we will see things start to get back to normal. But as long as they are fear mongering and scaring people...they will continue to sit on the fence :-(
We have the same thing in New Hampshire. I think that the fear factor has set in. I think a more balanced view of the market would be so beneficial. However, the media seems to concentrate on the gloom and doom.
Here is San Diego, Ca, we are experiencing a slow market, except in certain zip codes. Entry level here is busy and that seems to be because of FHA. In many communities we have 18 months of inventory and with foreclosure daily occuring -- the inventory gets larger.
Many are predicting that we still have two years of this market.
We are brokers in Atlanta and Destin. Fl is picking up as investors are swooping in on bank owned property. That area went down first and appears to be on the rebound. In Atlanta we did not have the large upward spike in prices that they had and our market is also picking up as builders are dumping their inventory. We rely largely on relocations to our area and we have noticed an upturn in activity to the higher priced homes. Our problem is the $200K -$500k homes, that is where the builders are killing resales.
The market in southeastern Wisconsin is better than it has been in a year and a half. When the inventory gets thinner...more Buyers seems to ge the message that it is more than an OK time to buy...For all the sense that doesn't make...Fighting the big bad media is a problem and a battle we all should be conscious of every day. Blog locally, talk, do whatever you can to educate folks about the market...come on in the buying is fine !
I agree that the lack of motivation is a factor. I have one situation where the buyer has been promising to write an offer on a particular property for the last three weeks. There is always another question to address and another opportunity to delay putting pen to paper. It's just very frustrating when you know they want the property but just won't move on it.
We have alot of buyers coming out to play right now, but tough lending is still hindering closings! I know things were too lax - but come on - there's got to be a middle ground!
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