Julie Butler…, Real Estate Pro in Virginia Beach, VA

Are you finding that potential buyers are still waiting for home prices to drop some more before they buy?

Asked by Julie Butler - Realtor, Virginia Beach, VA Mon Jan 16, 2012

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John and Vivianne
Bill wrote: "....and there was a confidence our government was making wise decision"
The public perception and reality often travel different routes.

There was a greater confidence when folks were spending like crazy people. By the way, the correction we are experiencing today was not result of WISDOM FROM OUR LEADERS but from natural, although brutal, market correction. The wisdom of our leaders allowed Bank of America to corrupt Moody's. And very little has changed since.

As we all know, the public is swayed easily through fear and doom & gloom messages. There seems to be an insatiable appetite for such toxic consumption. However, each and every one of us can choose to be servants of such sources or decide to invest the time, energy and intellectual resources to give the rest of the story. Not propagate the story but give the report on what is happening where you are located.
This post is not copyrighted and, being of such valid content, should be used by all..

Not copywrited by:
Annette Lawrence
0 votes Thank Flag Link Tue Jan 17, 2012
The Total Inventory(TI) of Single Family and Condos priced between $100,000 and $500,000 in the defined New Haven CT MetroMarket available for sale as in December 2011 was 3,671, down -7.7% from 3,978 last month. December 2011 provided 9.4 Months of Standing Unsold Inventory, a reduction from 12 MSUI in November. There were there were 439 new listings and 392 sales. The inventory reduction results from sellers who removed their homes from the active inventory since new listings outpaced sales.Copyright 2012 by David Carr
0 votes Thank Flag Link Tue Jan 17, 2012
Hi Julie I think there will always be a small group that will use the excuse that they are waiting for prices to come down as a reason to wait. However, I am seeing more buyers coming out of the woodwork this year that are actually more positive and ready to buy. It is a good sign and I hope the momentum continues in 2012.
0 votes Thank Flag Link Mon Jan 16, 2012
Some potential buyers have decided to make a purchasing decision but some offers are very low, sellers have to be reminded not to be insulted, just make a counter-offer.
0 votes Thank Flag Link Mon Jan 16, 2012
I don't think they are still waiting, but because they see market data (my market area) showing continued decline in prices they still want to offer below market price.
0 votes Thank Flag Link Mon Jan 16, 2012
Yes Julie,

I have had a couple clients wait on some homes thinking they could wait a few weeks or months to see if price reduction would take place, only to see the listing go under contract quickly. I guess with the talk that the the bottom has not yet come and belief that interest rates will get even lower seem

Sometime the best lessons are learned the hard way.
0 votes Thank Flag Link Mon Jan 16, 2012
Not at all. The good news here is that home prices shouldn't be dropping anymore.
0 votes Thank Flag Link Mon Jan 16, 2012
No, not here, for me, in my market. My buyers are stepping up to the plate no matter whether they are cash buyers or those needing financing. They feel that prices cannot go any lower and the same with mortgage interest rates. December and the 1st two weeks of the new year have been extremely busy for me whether working with buyers or my listings getting sold.

JOAN LORBERBAUM MOORE
Broker Associate, GRI
Lang Realty
9858 Clint Moore Road
Boca Raton, FL 33496
0 votes Thank Flag Link Mon Jan 16, 2012
maybe some are...but in my area there is less inventory now.....so, some are simply waiting for the right house to come on the market..........some are waiting for their current homes to sell..............it varies
0 votes Thank Flag Link Mon Jan 16, 2012
Hi Julie,
In Los Angeles, no..I have buyers. I just don't have enough homes on the market besides short-sales to look at.That's my main problem. I do think the sellers are waiting out the market for better times in order to sell for a higher price.
0 votes Thank Flag Link Mon Jan 16, 2012
Not at all--homes are moving. In fact for the first time we are seeing higher end homes move in numbers that haven't been experienced for some time.
0 votes Thank Flag Link Mon Jan 16, 2012
I agree with Vivianne, but to answer your question - no, in my market everyone seems to believe prices have bottomed. To tie in with Vivanne's comment, buyers are more nervous about future government actions rather than price or interest rate reductions and that is what's keeping them on the fence. There is mega-concern about the future of mortgage interest deductions, the scope and cost of mandatory energy retrofits, etc. etc. etc. Just like small businesses that aren't hiring, potential home buyers appear to be waiting for the results of the next election.
0 votes Thank Flag Link Mon Jan 16, 2012
Bill Eckler wrote: "people were working, the economy was strong and there was a confidence our government was making wise decisions...."


I find it interesting - almost hilarious - that you wrote that during the *boom* years people felt confident that government was making *wise* decisions ...... when quite the opposite is true. The reason the entire country went through the HORRIFIC housing industry crash is BECAUSE the government was making the WRONG decisions during those years: de-regulating the lending industry, allowing the subprime loans, packaging the good and the bed loans and selling to the investors.... the list goes on.

The point is that NOW is a GOOD market because finally we are getting back to the NORMAL, to what it should be IF the government did NOT make so many WRONG decisions.
0 votes Thank Flag Link Mon Jan 16, 2012
Julie not at all. December was the busiest in 6 years, current listing inventory is down 30%n while sales are up 18%. buyers are taking advantage of the low rates now before they start to edge back up again. Most price ranges have stabilized and we have even seen an increase in values in some areas.
0 votes Thank Flag Link Mon Jan 16, 2012
Julie,
It is a case by case basis, however, once my buyers are commited to finding a home, there is nothing to stop them. Usually after the first time seeing homes, they get the fever and aggressively start moving towards closing on a home.
Good Luck.
0 votes Thank Flag Link Mon Jan 16, 2012
Roland is on the mark with this being a "regional" issue. Conditions that exist in south Florida may be completely different from those in Dallas, L.A. or Vagas.

Without a doubt, some are still waiting but waiting for different reasons. When availability, price, and interest rates are optimal it would be fair to assume that there could be something else that is causing the road block......

Six or seven years ago when people were purchasing property almost "blindly" at inflated prices it was a different time....people were working, the economy was strong and there was a confidence our government was making wise decisions....it's probably best to not overlook these factors when trying to get a grasp on the theory of "fence sitting."

Respectfully,

Bill
0 votes Thank Flag Link Mon Jan 16, 2012
As Roland pointed out, there are areas such as Houston, DC and NYC where indecision is not forgiven.

In other areas, you have those who have listened to the real wealth builders and are taking action. Some who want to act but are so underfunded they can't get into the game where they need to be. Then you have the home buyer, the one you are speaking of, looking for GUARANTEES!

These risk adverse buyers will drive you crazy. They make low ball offers and fret that they will lose the money they paid for an inspection. They have a tendency to create their own crisis.

For many waiting buyers it is crucially important to understand why they are buying. I find they are easily moved off the fence when you can show them safety nets in the case they hit a speed bump or two in the coming years. Those who are risk adverse are seeking assurance. Find their value center and build the assurance they need. The two assurances most easily created are:
1. Instant equity
2. P&I alternative payment options. (self financed)

Those seeking guarantees need to incubate a while longer and perhaps will buy when the see prices rolling skyward again.

Best of success in 2012
Annette Lawrence
Broker/associate
ReMax Realtec Group
Palm Harbor, FL
727. 420. 4041
Web Reference: http://www.MyDunedin.com
0 votes Thank Flag Link Mon Jan 16, 2012
This is really a question that needs to be answered regionally. My sense of it, nationally speaking, is that most buyers feel the market is flat but they don't feel it is likely to drop further. There is some nervousness out there that inhibits sales and buyers are well aware that it is a buyer's market, more so than sellers, who don't like to hear that.

Once the glut of foreclosures gets filtered through, supply and demand should be in better balance and we can begins to see small gains in the market. We are seeing this already in some locations.

It is my own feeling that loans will be hard to get as long as interest rates remain low. What incentive is there to loan money like it is now? A few years ago, you could get a mortgage as long as you had a pulse, and we all know where that led us. Now the pendulum has swung too far in the other direction. But it will return.
0 votes Thank Flag Link Mon Jan 16, 2012
Julie, i have not seen that at all. I have for deals closing in january and 2 already for feb. Please feel free to give me a call at 757-403-5401. it is always a good idea to discuss ideas with other agents.Thanks Bob
0 votes Thank Flag Link Mon Jan 16, 2012
I work in northern VA and we are in the beginning of a housing shortage. Inventory is at its lowest point since 2006. Prices are up year over year. Buyers that enter the market get a wake up call the first day we view houses or the first time they make an offer and there are 2-3 other offers on the same house.

I do two things to help buyers make a good decision. First, I show how it's cheaper to buy than rent (if it applies and very often it does). And second, we look for homes to do 203k renovations on. That way they get a discount on a home and have it completely renovated. That is exciting and helps them move forward.
0 votes Thank Flag Link Mon Jan 16, 2012
I find that trying to figure out why potentials wait for anything is futile.
Web Reference: http://www.321property.com
0 votes Thank Flag Link Mon Jan 16, 2012
Not at all. In fact, my buyer business has exploded since the first of the year. I currently have four homes under contract and I am working with at least three other buyers to identify a home. We know prices have edged up ever so slightly in our area and interest rates are at an all time low. I think buyers are finally realizing that these condituions won't last forever. They are starting to actually BUY!
0 votes Thank Flag Link Mon Jan 16, 2012
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