Over the past three months we have seen less traffic and fewer offers in the residential real estate market. When we do see these offers come in – they are low and beyond that, they are being presented by less than enthusiastic buyers.
It’s official, the market has shifted – but what are the factors?
I have spoken to many of these less than reluctant buyers to see what’s been cooling them off and their answers all came from very different causes – hedge funds are drying up, international markets are crashing, or prices are going to fall… so I had to ask them next, where are they all getting their news?
Surprisingly, these answer did not differ so much – it was this blog or that Facebook post… not all from the same source but all from very similar ones. They were from news outlets that are about as accredited as this little blog of mine! Still, none of that means the information is not real and I think one of the factors holding up the market is fear – buyers are fearing the worst and it’s holding them back.
In 2007, we had a similar shift in the market. I asked many buyers at that time the same question and received very different answers from today – I lost my job, my stock portfolio dropped 25%, my bank won’t lend to me, and other REALLY scary things. But this time it’s different. I am interested to see if this fear will turn into true reasoning or if these ghosts will subside. Only time will tell.