Chances are if you are reading this, you are in the market to buy or sell a home. See if you can relate to this: Just a couple of years ago, buyers swarmed open houses waving piles of cash and people couldn’t wait to buy a home for fear of the price going up. Now they are staying away in droves, waiting for prices to fall.
"Buyers don't want to buy until we're at the bottom of the market," said Jackie Kimble, a Stevensville resident who bought her new home over 18 months ago, “I jumped in the market because of the frenzy, thinking that I had to get in now because appreciation would go on forever in the double digits."
Many buyers now have no sense of urgency and are willing to keep looking, hoping that persistence will yield a better deal. As a result, houses, especially at the lower end, are languishing on the market, while for-sale signs and price cuts are multiplying.
The number of days on the market in QAC also rose to 152 days for the month of October compared to 129 days in October of 2006.
It is obvious; there is a new breed of leisurely lookers. Many potential homebuyers are now taking their time, some up to over a year in the process and are not too diligent. My customers are quick to tell me, “We want to buy, but I am not in a hurry and I will wait to see what the spring brings, but if you come across a good deal, call me.”
So, as any conscientious Realtor, I bookmark the home and watch for any price drop (like a baker watching an egg timer) and guess what? The new home previously priced for $699,000 has been reduced and has now been sitting on the market for the past seven months. So, I rush to call my customer (because I knew this was really a good deal!).
“Hey, Mr. Smith, you 
wouldn’t believe, the home you really liked that we viewed a few months ago, the price has dropped by 10%!” The customer replies, “What are they asking,” I say $629,100 very ecstatically, thinking for sure he will jump out of his seat and say put in an offer.” I wait for the expected response, and there is silence. Finally, Mr. Smith with tongue in cheek says, “Well, pause, pause, that sounds good, but I have been following the market and the news, and I think the homes are still going to go down for the next six to nine months, so I think we will just wait.”
wouldn’t believe, the home you really liked that we viewed a few months ago, the price has dropped by 10%!” The customer replies, “What are they asking,” I say $629,100 very ecstatically, thinking for sure he will jump out of his seat and say put in an offer.” I wait for the expected response, and there is silence. Finally, Mr. Smith with tongue in cheek says, “Well, pause, pause, that sounds good, but I have been following the market and the news, and I think the homes are still going to go down for the next six to nine months, so I think we will just wait.”Are you kidding?????
I have another couple who qualified to buy a home in their price range of $500,000 to $600,000, but they are not in any hurry. They too, are hoping the prices will continue to come down. They told me they’ve been tracking desired neighborhoods online and have seen prices decline -- but admitted they would like to see them get even lower. At the same time, this couple is keeping an eye on interest rates, figuring that if they get too high, it may be time to jump in.
According to some real estate agents, there are two kinds of buyers: the kind who sit and wait, going to open houses, but not actively making offers; and the kind who submit offers, but not full price, and asking for all types of concessions.
