Phoenix, AZ-Housing Market Boom or Bust buyers staying on the sidelines, watching prices fall. Are your buyers setting back to see how low the price will go? I can say that the buyers that I have been working with are in no hurry to make an offer on a home. I believe that they are in fear of further price declines and a lack of urgency due to too many listings.
I doubt buyers' fear or lack of urgency will be resolved in the short term, since it will likely take at least several quarters for home builders to adjust to the significant decline in traffic and for inventory levels to fall.
So are we in the Real Estate Bubble and will the air be let out slowly, or will we see the air go out all at once? I believe we will see a slow release of air out of that balloon. As long as interest rates stay at where they are or drop, we will see a little softer landing.