What are buyers waiting for?
Recently, the Orange County Register made a report on the Orange County Housing market. In that report in the paper, looking at a snapshot in August, 52 of 83 Orange County Zip codes showed a year-over-year sales decline. Those results varied between communities. Seal Beach faired pretty good showing an increase in both price and sales for the year to year period. Some communities more inland didn't do as well. Los Alamitos for example, had prices go down .8% and sales stagnate. Cypress had prices go down the same as Los Alamitos but sales slumped 15%.
Most economists say that we've hit rock bottom in terms of the economy. So if we have hit bottom, why aren't buyers hitting the streets buying these homes with much reduced prices from 2005 and 2006? Is it because the federal tax incentive went away? Is there really no incentive? With interest rates sitting at 4.3% for 30 year fixed, it's hard to imagine that first time homeowners and investors aren't out in droves buying up the houses that are on the market. Some are taking advantage but still some are nervous about the economy and fearful of getting laid off from their current jobs.
It's tough to make a prediction for the economy. What most will agree is that prices are not going to skyrocket back to 2006 prices. You will see a slow steady grow in prices overall. Buyers should feel comfortable in purchasing a home in today's market. One only has to look back at 1980's interest rates to realize what a good deal they are getting with today's rates. If a buyer is planning to stay in their home five years or longer, there is no reason to wait. Are you waiting for prices to go down more? If so, then what happens if interest rates go up as well? Would you fair better then?
The question still arises "What are buyers waiting for?"
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