Buyers are expecting to get unbelievable bargain, and make offers at deep, deep discounts, and are often frustrated when they find they may be unsuccessful. It's very difficult to advise and not be perceived as "working for the seller"
Sellers are still holding on to home values from boom years gone by, and are reluctant to re-evalutate based on "today's living marketplace". Again, here, it's difficult to bring the seller's into today's market pricing, without looking like you're giving it away without a fight.
Real estate is by and large local. Let me state that again ,because it is worth noting: Real estate is by and large local. There are markets all over the countrty that are appreciating as we speak (type). There are Buyers getting great deals and there are Sellers poised to make big profits. The only truly "bad" market will arrive when everyone stops buying property, or the government decides to take away our property rights.
The second biggest challenge I have relates to personal habits in general- a complete lack of personal responsibility by many in society today. Everyone has an excuse for why someone else is to blame. Look in the mirror- odds are that whatever ails you can be traced to a decision you made or an action you took. Rates are the lowest in years, the ceiling on loan limits is about to be raised- what more could you ask for? The easy money may be gone in most real estate markets, but last time I checked contracts are still closing- in fact I have one due up on Tuesday.
Managing expectations is absolutely the challenge for both sellers and buyers.
It is my experience that sellers can't accept the information provided by the media and the buyer's do not realize much of the media isn't specific to the neighborhood they want to buy in.
But I agree with you on one point: buying home is primarily about providing a nice environment for you and your family to grow and share. Looking at buying a home as an investment should only be done by investors, which is a minority of all home buyers. So, both the media AND the agents need to re-emphasize this.
Conversely, if we have big foreclosure numbers will we also, with the new underwriting guidelines and drop in values (hence increasing affordability) bring NEW buyers into the market from the Fence to take advanage of the new conforming loan limits?? Hmmmmmmmmm??!!
The biggest challange I face is low sales. Our unit sales has dropped off and we have more agents here then lawyers so there is too little business to go around. Looking at the numbers we still have a very low absorbtion rate for condos and single family but every property is in jumbo loan land and the buyers are waiting to see what shakes out.
I support a system where Freddie and Fannie both buy loans at a percentage of a regional median rather then a fixed number. Average price for a 2/1 house in San Francisco is way over 417K . What could you buy in your market with a 417K loan? The new proposed structure of up to 125% of median as conforming is the right way and the fair way to accomplish their mission of funding the secondary market and freeing capital.
Most people here make it sounds as if the media have an agenda to make the things look worse than they are. A kind of conspiracy theory here! I think many people are giving too much credit to the media. What has happened is that people have assumed so much debt and now they need to service it. Since the home prices are not going up anymore, they can't borrow against their homes. The result is that they stop spending money on anything but the essentials, while putting most of their income to servicing those debts. The media didn't make that happen -- the people did! So, it's a payback time.
I strongly believe that if the home prices were to go 10-20% down, the demand would pick up and the things would start balancing out. Until that happens, the buyers will wait as they don't want to end up with overpriced homes that could potentially lose value in the near future. So, the sooner all of us--the agents, sellers, and buyers--find that equilibrium, the sooner we'll be out of the woods. Just my 2 cents!
How about challengeS???
2. Buyers on the fence
3. Buyers looking for steals
4. Sellers living in yester-year
5. Did I mention the media?
LOL Brenda. Does anyone remember when the media was pumping prices UP? I wasn't too crazy about that either.
With constant coverage that addresses â€œThe Real Estate Bubbleâ€ and â€œMarket Downturnâ€ people have become more reluctant to spend their money. Perhaps there is another bargain coming up, they think, but they seem to have forgotten that they are buying a home not an investment portfolio.
The â€œHi- Tech Stock Bubbleâ€ is probably in many peoples minds but honestly you can not compare a house with a stock, or can you???
The media sensationalism is just annoying. They should focus more on Brittany, and stop creating bubbles.