Buying a house these days should be something that many potential buyers would jump into. Low mortgage rates, low prices and lots of choices are like the perfect situation for buyers. So why aren’t they chomping at the bit to buy homes?
Many house hunters are becoming paralyzed by the fear of buying a house. Although it is the dream of most Americans to be a homeowner, the uncertainty of the financial market makes it difficult to be comfortable with such a large purchase and commitment. Others think there is still room in the market for prices to drop even further so they want to wait until that happens so they can save even more money on their purchase.
According to Lawrence Yun, the chief economist for the National Association of Realtors, this type of behavior among potential home buyers is not out of the ordinary. In fact, it’s rather normal. He said that it is similar to when the stock market crashes. Investors want to wait and see what’s going to happen before they jump into any more stocks.
Reports say that home sales figures have dropped by about 25 percent when compared to last year’s sales. That means that there are more people simply waiting to see what’s going to happen before they jump into the real estate market. Real estate agents are finding other jobs to supplement their income because they simply are not making money from home sales these days.
Part of the reason for the drastic drop in home sales is because many people who already own a home and want to move to another one are having problems selling their current home. Until they can sell their existing home, it is almost impossible to move to another one. Unfortunately, with the way the market is, homeowners have to drop the sale price of their home to a level that is below what they may have paid for it. As such, they are losing money. Some buyers have even resorted to moving in with family or renting a small apartment for a while so they can save up money for a down payment on a home.
If fear has gotten a hold of you and forced you to put your dreams of owning a home on hold, there’s nothing wrong with taking a little risk. Take some time to do some research and you can find a really good deal these days. You may never be able to get a bargain like this again!
Comments
balor123
December 03, 2010
Depends on where you are. In high cost of living areas, prices are still 10-20% above where they should be if there hadn't been a bubble. During recessions the prices should be below the median. In these areas, you could be looking at loans that are 4x - 7x your income just to get a decent place. If interest rates ever go up and you need to move, then you could find yourself in a lot of trouble. With so few people buying now, you won't be in a boat big enough to warrant government aid at that point. The difference between high and low cost areas has never been higher.
In places that are cheap you're getting the deal of the lifetime. In places that are expensive, you're getting the rawest deal of a lifetime.
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