Hello, is anybody there? (long echo ............ crickets)
That's what the market has been like here in the Northwest Suburbs for the last 2 months. It's been very lonely and I'm sure most sellers will agree with me. No action!
What I've noticed is lots of internet 'shopping and lurking' but no real foot traffic into the homes themselves. Inventory is UP over last year and in a few instances 2009's sales total have surpassed 2010. So if we stop for a moment and wonder where the buyers actually are? (crickets again) I can't actually say. But they are lurking.
Interest rates are the absolute lowest they have been in 40 years. Rates (in sidebar on right) are just about as low or lower as when my parents bought their first home VA back in 1956! They were horrified and scared at that 4.5% interest rate but then came the 8%, the 10%, the 12% and above. You know the rest of the story there - it was a good move at the 4.5%.
Traditionally July and August have always been vacation months and the slower selling months. I was anticipating more activity based on the rates, the great prices, etc.
Are buyers waiting for the official word on another tax credit? Possibly.
Should buyers be aware that waiting to purchase a home after October 4th, 2010 with an FHA loan will cost them more? I bet they don't realize it, but I've tried to get the word out to them to start planning now!
Lyn - I think this year's "casual" buyers have all made their purchases. Those who must move or feel they must purchase will still be around, but there are not too many of them.
Unfortunately John, I think you may be right. I have been following the pendings & there haven't been any!
Lyn... I see more potential buyers every month, but most are leaving the wallets at home!
Lyn- combine that with the fact that buyers are assuming that every listing price is just a 'suggestion' and it really means the seller will take 20% less...! Hang in there :)