Buyers waiting for home prices to drop further
Many buyers of any product or service always want to buy when prices hit rock bottom. It is human nature and we all want a bargain. In today's real estate market with prices dropping in many parts of the country many buyers are waiting for prices to drop further because they hear on the news and read in the newspapers that foreclosures are at all time highs and climbing every month.
Having been in real estate for over 27 years I can't tell you the times that buyers or sellers lost out on opportunities because they were waiting for prices to peak or hit rock bottom.
Many sellers in 2005 received record prices for their real estate. In many cases these sellers were receiving multiple bids on their real estate and they thought this run up in prices would last forever. Many sellers that held out for top prices are now faced with property values that are well below what they could have sold for in 2005 & 2006. I know of many cases where land owners are now looking at land values that are more than one half the values they were looking at in 2005. In most of these cases sellers held out for higher land prices and they now cannot even get what they were offered in 2005.
Buying real estate is the same. There are incredible values in real estate in today's market and these values coupled with near record low interest rates makes it a great time to buy. Those that buy in this market will be rewarded richly. There may be a handful of buyers that will receive better deals than those that buy now but the vast majority in my opinion will miss out on current opportunities.
The media plays on our minds and many homebuyers can't help but be influenced by the vast amount of reports that are telling us how bad the real estate market is. Be careful of how much you allow this media to affect you. If you continue to wait for "Rock Bottom Prices" you just may miss out on a great opportunity to purchase a home for you and your family.
I guarantee you that real estate prices will go lower. No one knows how much lower prices will go from today's prices but it is a given that they will go lower and then the market will correct and prices will start to rise. Every state is different and the states with stronger economies will fair much better and real estate prices will rise faster in the stronger economies.
It is a known fact that Idaho has one of the strongest economies in the country. While the rest of the country is seeing some tough economic times Idaho's economy is so strong that USA Today was recently compelled to write No end in sight for Idaho's growth
My advise is that if you find real estate that you like and can comfortably afford, please think twice before you wait for prices to fall further. If you do you may just miss out on a great opportunity.