A buyer I’m working with was asking me if the market was still declining or not. Here’s my take: sellers can’t help themselves and prefer to start high; the house is not in a good area; the house needs a lot of work; and the house is dirty. Guess what happens. The market rejects it, month after month, and the seller is then forced to lower the price. The market then interprets that as: prices are going down.
If sellers would place a realistic price on the house, it would sell and the market would interpret that as: price stabilization. What are the odds of sellers doing that? None. Sellers, whether they be regular homeowners, agencies, organizations, or realtors, do what is humanly natural: they want to start high. (Greed, righteousness, fear, and distrust all put together pop into their minds.) And there is nothing that can convince them to do otherwise. When you sell your house I bet you, you will want to start high, right? A few sellers are realistic and they sell their houses right away AT fair market value.
All of that to get to this--is it a good time to buy? Yes. Look at the stats provided by Fannie Mae:
Despite all the foreclosure problems we’ve been having, we’re seeing good sales activity because of low prices and interest rates. In many metro areas, it’s cheaper to own than to rent.
Whether you’re buying to live or invest, it’s a good time to buy.
If sellers would place a realistic price on the house, it would sell and the market would interpret that as: price stabilization. What are the odds of sellers doing that? None. Sellers, whether they be regular homeowners, agencies, organizations, or realtors, do what is humanly natural: they want to start high. (Greed, righteousness, fear, and distrust all put together pop into their minds.) And there is nothing that can convince them to do otherwise. When you sell your house I bet you, you will want to start high, right? A few sellers are realistic and they sell their houses right away AT fair market value.
All of that to get to this--is it a good time to buy? Yes. Look at the stats provided by Fannie Mae:
- 69% of renters say owning a home makes more sense than renting
- 61% of renters think home ownership is a safe investment
- 72% of renters feel home ownership is good for the economy
- 38% of renters indicate they are likely to buy a house in the next three years
- 16% of current homeowners are likely to buy a house in the next three years
Despite all the foreclosure problems we’ve been having, we’re seeing good sales activity because of low prices and interest rates. In many metro areas, it’s cheaper to own than to rent.
Whether you’re buying to live or invest, it’s a good time to buy.
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