Business has been picking up, buyers are out there. Prices are still low (I believe we have hit bottom!). That being said, interest rates are slowly ticking up. The home a buyer can purchase today, compared to one he may be able to purchase in six months, may be sunstantial.
Examing the cause and effect relationship between interest rates and prices may reveal something strange this year. I Believe we are going to see interest rates rising, along with price appreciation. Normally higher interest rates would lead to lower prices, however this year because of the steep declines in home prices over the last few years there is'nt much more room to give.
If the scenario I envision comes to pass, many buyers will be looking back and wondering next year where all their purchasing power went. When you can buy in Commack, Smithtown, Hauppauge or Kings Park for under 400k, and get a very nice home; these are good times for buyers. I forsee next year the buyers who wait, will be going from looking at mint colonials and splits, to handyman ranches. People have forgotten the devastating effect interest rates can have on purchasing power, you'll be paying the same mortgage payment on a much lesser house; all due to the rising interest rate and appreciating prices.
People always look back and say "I wish someone would have warned me!". The warning is there, interest rates are slowly creeping up. Even if you are a pessimist and think prices will continue to drop, a rising interest rate alone can devestate your purchasing power. Stop thinking, get off the fence and start looking. Or wait for the next housing crash......in 20 years or so.
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