Is the market in the eye of the beholder?
I have been thinking about people in my area and their opinions on the market. Personally, I think it's a buyer's market, based on inventory and rate of sales. In reality, the buyer's market is the normal market and always has been a normal market in Mid-Missouri. The rare periods of intense demand that created a seller's market is a time to be appreciated but not to be expected. I think people have unrealistic expectiations. This is made worse by TV shows that show a lucky person selling a home for a $230,000 profit after only a brief, easy remodel. A buyer's market is not really a bad thing for everyone. It's actually a good thing for many people. For example, landlords can't find decent tenants when everyone with decent or even marginal credit buys a home. This leads to large amounts of vacant apartment and rental properties. This not only has a negative effect on the property owners, it also hurts neighborhoods. No one wants to live by an apartment complex that's half empty. Empty properties invite vandalism. This drives up insurance rates as vacant properties have more damage claims. The buyer's market also makes it easier for first time buyer's to purchase a home. When buyers don't have to compete with and bid against other buyer's, they are more likely to be able to purchase a home. Buyer's markets even help Realtors. When there is plenty of available inventory, home owners are more in need of the services of a Realtor. In a seller's market, a home owner can just take out one ad or pur a sign in their yard and get their home sold. Studies show they won't get as much profit without using a Realtor, but some people aren't concerned about that. In a buyer's market, home sellers really need the marketing strategies only a Realtor can provide.
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