October 20th, 2007 12:02 AM by Manuel Couto, CRS, CRB
I DON"T KNOW. People are still working and paying the bills. People are still striving for the best for them and their families. People are still looking at the Real Estate advertisements and Homes Magazines and all those internet sites that offer glimpses into other peoples homes (As they look for homes). MMM, I think it's called window shopping for window shoppers.
So, why isn't anyone buying? Why do they look and not sign on the dotted line and make offers?
I think it's because they've all bought into the mass hysteria of Wall Street (whose creative financing helped develop this real estate lull). They (they means you, the news reporters, the economists, and some of the "people") believe that this is not the time to buy a home. This is not the time to trade up, trade down, buy a vacation home, buy a retirement home, etc. This is a time to wait.
WAIT? Who the heck is kidding "Them"? This is the same group telling us to wait, that tells us to income average when you buy stock, or to make monthly payments towards a retirement account and not wait for the big deposits. Why, and who are "They" to tell us to NOT buy a home? I don't understand. Someone is spreading the word NOT to buy homes, all the time the value of the dollar is dropping and WE keep on paying rent. I understand that there are an unfortunate few that can no longer afford to keep their homes, and for them, I am sorry. I am not sorry for the greedy leveraged investor that bought homes with nothing down at high interest rates and counted on the constant appreciation. They teach you better in school, but it was a time for easy money and many took advantage of it. (Nationally, the average is 3% turnover at any given time due to affordability, death, divorce or the need to move.) What I don't understand is why wait?
Home prices are lower than last year, AND the interest rates are the same or better than last year. (Don't "They" tell us never to try to time your stock purchase or your investments... just do it?) There is a good amount of inventory, and the realtors are more than happy to help ANY buyer.
Realtors have access to the local banks, loan officers, termite inspectors, know the local construction office official and inspectors. WE are waiting for YOU the public, to stop listening to THEM and start looking for a home for YOU and YOUR FAMILY. Wouldn't you like to stop paying rent? Wouldn't you like to sell your home and move into a bigger/smaller/condo/beach home/retirement community? What's stopping you?
1. "I'll wait until the market gets better". Yep, that always works, right? (please stand up if you sold your tech stock before the last crash). Don't you realize that if you sell cheaper, you can buy cheaper?
2. "I'm not going to give it away". You're right. You won't be giving it away. You'll be selling your home in a fair market economy driven by supply and demand and affordability, and a little bit of dreaming and wishing. You will sell it for whatever the current market will pay. It's not giving it away.
(I can hear it now... go to number one, see the cycle?)
3. "These buyers just want to lowball my home" Nope, they are testing the market, the same you do when you listed the home for $5000 above what the realtor recommended. Be honored that they at least offered. That shows some interest and a real buyer, not a lookie loo.
4. "Last year, I should have sold". Why? last year you were not ready, and the home you want to buy now, was more money. Aesop's fable about the sour grapes comes to mind
SUPPLY and DEMAND, dictate the market .... and consider this
The longer YOU wait, the more YOU help create this cycle. "Now it's my fault? It's the lenders, the bankers, the greedy purchasers that bought BIG homes with no downpayments, it's the builders, it's the ....._______fill in the blank" No, it's YOU. YOU ARE THE MARKET. YOU wait, and so does everyone else that should/would buy a home. Sellers that have to sell keep on reducing their prices while you wait it out.
"Great! I can get the home cheaper!" Maybe. While you waited, inflation ate your savings or you bought a car/went on vacation/lent it to your brother..., and with fewer buyers, many people that don't have to sell, wait to sell. No buyers and fewer sellers, and what happens? Back to supply and demand? Maybe but let's look at the bigger picture. The bigger picture is the economy.
15 years ago, while the government helped the auto industry retool, it was mentioned that each new car sold was 180 jobs. Each new home is over 300 new jobs, or the continuation of old jobs. (contractors, supply stores, lenders, attorneys, accountants, oh.. realtors, insurance people, surveyors, bringing into community new students, teachers, firemen, police men, government workers)... WOW. How many jobs/people can you think of that touched your life when you bought a home?
And now everyone is waiting to buy their dream home "later". Makes no sense to me. www.MCoutoRealtor.com, www.MyKearnyHome.com
What do you think?