Every day, at least once, I am asked, 'How is the real estate market?'
Wow. I used to be able to say, "great" and move on to their specific questions about their house projects and what has sold recently.
These days, I try to be positive, because the truth is that I am super busy. The difference between now and 'before' is that every transaction is just REALLY hard!
The buyers want to buy, the sellers want to sell, the lenders want to lend and the Realtors want to make it all happen; so why is everything so hard?
There is no easy answer, but the way I see it, we all feel like the sand is shifting under our feet. Sellers are surprised to find how far below their asking prices buyers are willing to pay for their houses. Buyers are nervous about paying too much, given what has happened to home values in the past 2 years. Lenders are constantly having the rules re-written for them in an effort to protect investors who are making the loans, making underwriting a real challenge. Appraisers are afraid to over value a home and often have very few (good) comps to work with. Foreclosures and shortsales are domintating many markets and they are often far more complicated to get from contract to closing than a more traditional purchase.
I feel confident that the tide is turning. The days on market statistics seem to be dropping and then inventories seem to be stabilizing. I think everyone knows that it is not going to be an easy road to a full recovery in the housing market. The baby steps are beginning to happen--and we all know a baby has to learn to walk before they can run!
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Holly - We meet every transaction, every action every decision with indecision and apprehension. One day soon the comfort shall return!
You're absolutely right. Everything now is so much harder ... what I'm finding mostly, especially with people I've been working with and speaking with, is that buyers are just really afraid to commit. Not because they can't afford it, and not because they don't have enough savings/back up funds.... they just don't know if they will still be employed tomorrow. When they do decide to take the leap, they are putting in extremely low offers "because the market is on their side" (but the home is priced right already)....
The economy will get better, and people will be less nervous, and things will become more 'normal' ... hopefully soon.