Someone would NOT buy in this market because they are ignorant, and they don't understand that this is the BEST time to buy, even if a mortgage costs 75% of their take home pay. Housing ALWAYS goes up...in fact it's still going up right now. The government and the media are lying to the consumer because it's fun for them to watch the economy slip into peril, even though it's all a lie.
Rent is cheaper.
Can't find an agent that you can trust.
Homes are selling that are destroyed. (They still comp.)
Did I mention prices are falling from the sky?
People want to wait to see if the rest of the neighborhood gets built, or just sits half finished.
Did I mention cheap rent.
Don't want to move into the forclosure on the block with 4 others that are destined to be rent houses.
Intrest rates are bound to go up and drive prices down.
Intrest rates will go up and increase forclosures.
Did I mention prices are Still Falling?
Maybe I should buy so my value can go back up to boom prices and I can HELOC and finally get that hummer for free....
This glut has forced banks to assess the cost of the short sale process. Loss mitigation in unexpected volume is creating a real problem- and they're likely assessing if foreclosure isn't less costly for them.
So, it would seem that the time to NOT purchase a home is when it isn't an urgent need, and the decision comes at a time where foreclosure or short sale pricing doesn't match the income of someone looking to buy- better to wait until there's an indicator that signals the bottom.
Investors notwithstanding. There are avenues for investors that begin before things hit the mainstream.
Investor activity is a good thing, and worth keeping on top of. Just an opinion.
Because their credit score is 380, their income is $16,000/year, they owe back taxes, have defaulted on their child support, and no one will give them a mortgage.