Is the real estate market changing? Are buyers thinking twice?

I was having a conversation with one of my team members about some of our listings that have been in escrow and recently fallen through because of buyers changing their mind or getting out of the market for the moment. We also have many listings that we are going to be reducing the list price because they are just not moving and these are some pretty well priced properties.

The general consensus seems to be from asset managers and people "in the know" that there will be a lot more properties coming up on the market in the first quarter of 2010. Whether they are a good amount of foreclosures or short sales that sellers will be putting on the market, there will be a massive influx of properties come the first of the year and that should bode well for homebuyers especially with the $8,000 credit being extended. I think that some buyers are deciding to wait and see what comes up and if properties will come down any lower.

Many experts say that prices will come down further and I have to say yes, and no. I think that as many homes that come on the market in the more affordable price range of under $400,000, there are twice as many buyers waiting. The issue I see is the higher priced homes where lending for those properties is tight and strict. Lenders are still nervous about lending because of the uncertainty of where the market will go and how much lower they expect prices to go. This is continuing to and will create issues with higher priced homes for sellers who really need to sell because of their mortgages adjusting. The more that higher priced homes continue to come on the market, the more that you will see prices come down in that price range because money is tight and not many people are walking around with cash to buy these higher prices homes.

I think that all of this causes many buyers from all price ranges to think twice before jumping in without realizing that real estate is local and not all price ranges are being affected the same. Some will be glad they held off, some will be very sorry that they did. It is all relative to the price and location that buyers are looking for.

Your thoughts?

Comments

[Childrens Sofas]

You seem to have got the niche from the root, Awesome work

Regards