Inventories are up, prices have eased and interest rates remain near historic lows. Clearly, it's a Buyer's Market. So, why aren't the buyers buying?
In my market, Westport, CT, activity appears to be picking up. Listings are receiving showings and anecdotal evidence indicates that agents are not lacking buyers. Yet, statistics, for the past two months (March and April), show units sales down, to half the pace of a year ago.
Certainly, some buyers are facing real obstacles:
*Their current home may be on the market, but not yet sold
*They may be having trouble arranging financing
Yet, that doesn't explain the whole picture. Clearly, more factors are influencing the market.
The extensive reporting, on the collapse of the housing market, may have led buyers to unrealistic expectations. While the current environment certainly provides an opportunity for buyers to move to communities and/or purchase homes that were previously out of their reach, it does not mean that properties are being given away.
More than once, I've reminded clients that "This is a Buyer's Market, not a Fire Sale". The media has convinced buyers to make really low offers. So even when prices have been significantly reduced, sometimes below market value, I've seen offers come in an additional 10 or 20 percent lower. No matter how low the price, they've been conditioned to believe, they should pay less.
Some buyers are afraid to make a decision, because the market may go lower. While they are trying to "time the market", they may miss out on some truly good buying opportunities. Finding the bottom can only be done in hindsight. By then, the house they wanted will no longer be available and prices of new listings will be higher.
If the house is right and the price reflects market value, the time to buy is now.
Servings Westport, CT
and the surrounding communities
Copyright © 2013 Marilyn Katz, All Rights Reserved