How Long Will the Buyer’s Market Last?

<p>

As MLS inventories rose and home prices fell from their highs in 2006, the market shifted from one of the most booming seller’s markets to one in which buyers had the clear upper hand. In fact, buyers who can currently qualify for a loan have the opportunity to buy with unprecedented value. Much of that has been due to the contracting economy. High inventories have outweighed demand for almost two years, putting downward pressure on home values. Low mortgage interest rates and tax incentives for first-time buyers are also the result of an economy that needs a push. However, as the economy improves, mortgage rates will rise. And, the government tax incentives expire in four months.

Stu Barnes explains why buyers may soon lose their upper hand:

“First off, let me say that I totally understand why SOME buyers are hesitant on pulling the trigger. There is not one week that goes by when I am just in a casual conversation when someone says, ‘I can’t imagine why it’s so slow for you guys, the rates are low and prices are low…buyers are crazy not to buy now.’ True and not true. The fact of the matter is rates and prices are low, but in general a lot of people are unemployed and if they are employed they are shaking in their boots that they will lose their jobs, so buying a new home isn’t even a thought now. BUT, for those that are very qualified and secure with their employment and currently out looking at homes and giving feedback like ‘house needs too much work, waiting for rates to drop, waiting for prices to go down or priced way too high for competition out there’…….your days are limited to have that ability to pick and choose on your watch.”

While there are highly desirable markets that are seeing buyers flock to open houses and homes going into multiple offers, there are still many qualified buyers waiting for a sign to tell them that now is the time to buy. As a REALTOR® , if this is something you are running into, blog and tell people about the time-sensitive incentives for buyers. Once inventories fall to normal levels, the buyers that waited for the right deal will have a hard time finding it.

Click through to read Stu Barnes full blog.

Sign up for a free Featured Blog on Realtor.com today.