In the Washington Post article, In struggling housing market, buyers and sellers are out of sync, the writer captures the prevailing buyer vs seller climate in real estate. Current low interest rates should be attracting more buyers to the market, but according to the article, at the present rate of home sales the US, as a whole, has over a year of unsold inventory – double the average.
Caught with high mortgages, many homeowners have periodically put their homes on the market, only to take them off again, unsold, finding themselves playing ‘the waiting game,’ i.e., a return to better home values. However, Mike Larson, an analyst at Weiss Research predicts that those days may not return for a long time: “There’s going to be a long-lasting psychological hesitancy for ordinary buyers to believe again in the dream of building wealth through homeownership.”
Below is an exerpt from a ‘good read’ article…
Across the Washington region and around the country, the expectations of buyers and sellers are out of whack, thwarting deals that could potentially lift the U.S. housing sector from its long funk. The nascent rebirth of the market earlier this year proved to be a mirage.
Despite record-low interest rates, many would-be buyers are retrenching, hamstrung by meager growth in their wages, gripped by fears over the possibility of losing their jobs or another recession. Sales of existing homes plunged in July to the lowest level in more than a decade, and sales of new homes were slower than at any time since the government started tracking the data in 1963. The results were far worse than some of the most pessimistic economists had expected…
From article by Dina ElBoghdady, Washington Post
Sunday, September 5, 2010