WHY ARE BUYERS WAITING AND SHOULD THEY?

Do you have a buyer who is fence sitting?

The climate of this real estate market lends itself to a lot of waivering when it comes to buyers.  This is very typical in a buyer’s market as opposed to a seller’s market.  A lot of people are just waiting for the “right time” to buy.  Face it, you want to buy low and sell high.  That is just human nature.  However, the paradox here is that people don’t know if they are facing a further decline in the value of the home they are going to buy.  Can  we blame them?  If you watch the news, it’s one bad thing after another.  Everyone and his brother has an opinion about if the market is at the bottom.

Because different parts of the country are experiencing various levels of price declines when it comes to real estate values, you must check your local area.  There are cities in metro Phoenix that have declined more than 50% and then there are areas such as Scottsdale that have not seen as much of a decline.  If you are waiting to buy to see if the prices will drop more, you may miss the boat.  Because inventory is high right now, that is partially why the prices are lower.  When people start buying again, the prices will go up accordingly.  In addition, keep in mind that Phoenix is the 2nd largest growing city in the country.

Loan are being closed every day.  However, there are tighter regulations.  No more “no doc” loans and there are some programs out there that will help with down payment assistance.  However, if you have bad credit, that may be an issue and something you need to discuss with your lender.  We are back to the days of buying a home if you have the money set aside to make a down payment.  This is a good thing.  We certainly don’t want this mortgage meltdown again. 

Be sure that if you have already started to look for a home or are thinking about it, you really should contact a lender to know what you can afford.  This may narrow down your options as far as the area(s) you are looking into.  This will put you one step ahead.

Bottom line is, if you are waiting to see if the prices drop more, you may just miss the boat altogether.  If you find a home and it’s everything you want and can afford, then take the next step.  This is actually a really good time to buy!