I heard the same question three times this week from clients trying to sell their homes: Where are all the Buyers?
I found a quote from a leading credit company exec that may answer the question as to why many potential buyers are staying away: "Housing market conditions may not have reached bottom at this point, with 57 percent of renters thinking there is the potential for a price collapse in their local areas over the next few years and 18 percent of all Americans expecting prices to decline during the year ahead," said Ty Taylor, president of Experian Consumer Direct.
Potential buyers reason, taxes are high, home heating costs are high, so why take on a higher mortgage now when a house may cost us less in six months to a year? I frequently respond to that line of reasoning by saying that no one has a crystal ball to know what prices will be like in late 2007-early 2008, and certainly no one can credibly predict where interest rates will be. So buyers with 20% down and the ability to handle a fixed rate mortgage should take the plunge and buy, I argue, because over the long run, the price of any home they buy will appreciate again.
But one size sheet set doesn’t fit every size mattress, and so the less fiscally fit buyer has every right to dive back under the covers and wait to see how things shake out.
On a different topic: Happy Birthday to two fabulous females, Nancy and Sally. Nancy is getting to fly off to warmer climes, while Sally is getting Frosty Paws. I know they’ll both enjoy their birthday treats, and wish them both continued health and happiness.