What it does not say is that those sellers who try to wait it out will not ever get their time back...
What it does not say is that those sellers who try to wait it out will not ever get their time back...
IMHO * People are witing until after the November election. If there is a signal to the economy that America is BACK in the BUSINESS of BUSINESS and there is some stability in the financial and housing markets, people will take greater interest in BUYING...lots of people want to sell - it's the BUYING that is hard!
The only problem my cash investor buyers are having is finding enough distressed properties to buy. Too many other flippers and landlords out there bottom feeding. It's been that way for over a year.
The owner occupant buyers I have are not having any trouble buying either, they have decent credit scores and down payments.
Money is cheap. Down payments aren't. Good credit scores aren't. You have to *EARN* those.
I have not heard any buyers expressing a concern that they are afraid if they buy the market will go down further. I heard that hesitation 1.5-2 years ago, but not now.
And I haven't heard too many buyers hesitating due to fear of unemployment. Of course the people afraid of that are probably not calling us!
Prices will rise simply due to the cumulative effect of QE1, QE2, etc. The Fed's monetization of the debt is making the dollar bills smaller. So the price of a house in terms of dozens of eggs, gallons of milk, or gallons of gas may not change, but the price of all those things, including the house, in dollar bills, will inevitably increase as the Fed keeps printing more money.
During times of inflation it is better to be a debtor than a creditor. Buyers should be happy to take on new debt because they will be repaying it in smaller dollars and it is at very low rates. Unfortunately they will be earning smaller dollars too.
Good article - I am also seeing what you stated in your comment above. It's very hard to buy right now as inventory is very low. Equity sellers are waiting for higher prices and they are coming . . . Regards Dave
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