A new poll about real estate buyers mentality is certainly interesting to read. Not because it makes sense, but because it truly shows the mentality of buyers sentiment concerning the real estate market.
“This is a great time to buy, but not necessarily to sell,” said Robert Jackson, who lives in a two-bedroom house in Ferguson, Mo., with his wife and four young children. He said he would love to purchase a larger home, but can’t because even if he found a buyer, he would probably lose thousands on his house, which he bought less than two years ago.
It’s all relative. The bigger home you want to buy (if it’s in your same market) has also more then likely gone down in price from two years ago.
A real life example, a Henderson home purchased for $300,000 two years ago is now valued at $250,000. Another Henderson home we know of that was valued at over $550,000 two years ago is now available for $390,000. Even if I wanted to, I can’t give specific details because they are real life potential transactions we have going on right now.
The growing reluctance to dip into the housing market seems to stem partly from worry that housing prices will continue falling – good if you’re buying a house but bad if you have to sell one.
That’s certainly an interesting statement considering that this whole report is based around the opinions that buyers are not buying because they fear prices will continue to fall. As I tell Las Vegas real estate buyers, There are several deals available below today’s current market value. (The Las Vegas real estate deals are out there to do this but you must understand the difference between an asking price and a market value price.)
As with any market, if people don’t buy, prices fall. If nobody buys gas for the next month, watch what happens to the prices. (I know, unrealistic but it would be very interesting to see what would happen if it was even only for one weekend.)
Jackson is not alone. Sixty percent said they definitely won’t buy a home in the next two years, up from 53 percent who said so in an AP-AOL poll in September 2006.
This study and the poll results show exactly what the main problem is concerning today’s real estate market: Confusion.
Fifty-nine percent think now is a good time to buy.
Paul Francis, ABR,CRS | Coldwell Banker Premier | Las Vegas Real Estate | 702.592.3058
April 20, 2008 at 3:25 pm
Hi Paul
You point out an interesting paradox. I think what is happening is many buyers are taking a look at the lowered pricing and low interest rates, but may be having difficulty lining up financing; especially for buyers that are looking at homes that are over $500K.
April 20, 2008 at 3:53 pm
Thanks for stopping by Louis,
You are absolutely right about the financing aspect. It’s certainly harder to get a loan then it was during ’03 through ’06 but is it harder today then it was in ’00 and ’01?
If I was a lender, I’d certainly be more comfortable about lending money for real estate(with standards found before ’03 obviously)then two years ago.
(Note to Banks and Lenders, call me for information on where to send your CEO compensation package and if I blow your future earnings, I promise you won’t have to pay me a $100 Million dollar severance package:).)