Buyers' Market?

Looking at the amount of inventory available, it's easy to assume that it's a buyer's market again. Easy to assume unless you carefully study this particular market...

When you really investigate, it's true that there are more properties on the market than there were a year ago. The difference now, is that properties are remaining on the market longer, and generally, prices haven't really subsided relative to the current market conditions.

Part of this what I'll call market lag, is the unwillingness of sellers to face the realities of the day. Money is tighter, buyers are fewer and more cautious. As a result, market values are being challenged a bit and competition is greater due to the increased inventory.

Combine the current market conditions with the stiffer qualification required by lenders, and you've got a market that's a little sluggish.

The one tried and true cure for a sluggish market is price reductions. Unfortunately, many sellers are slow to wake up and smell the coffee, still clinging to the wild ride of a year ago when they could pound a sign in the ground and have an offer in hand before they walked back to the house. (Okay, okay, that's a slight exaggeration, just checking to see if you're really reading this post.)

Regardless, the market is a bit slower now than it was a year ago. All things considered and in the wake of the mortgage crisis, it's still not in too bad a shape.

One thing you must keep in mind is that no matter what the market, the best properties don't last. This is just a reminder that when you do find a home you like, make an offer, don't assume that it will still be available tomorrow and you may have found your new home.

There's a saying in the industry; "If you sleep on it, you may not sleep in it". This has never been more true than it is in our present market.