Tuesday, January 22, 2008

Price reduction not always a red flag

Several years ago, a home listed for sale developed a stigma if it didn't sell within a month or two. Today, many sellers have homes listed that have been on the market for six months or longer. In fact, it's so commonplace for it to take a significant time to sell a house that it is no longer a disgrace if a listing doesn't sell right away.

It's an irony of the current market that with all the homes offered for sale, many serious buyers can't find a home to buy. There are often certain types of homes, in certain areas, that just aren't on the market. These are usually prime properties in excellent condition that have broad-based appeal. When these listings come on the market, they are usually snapped up quickly, despite the otherwise slow housing market.

Many buyers are sitting on the fence at this point, watching the market and waiting for a better time to buy. It's impossible to time the housing market, so you won't know precisely when the market will next correct until that correction has already occurred. A market correction can be verified only through hindsight.

Although most buyers feel more comfortable buying in a hot market -- even though it may mean paying more -- there are some buyers who see a slow market as a good buying opportunity.

Read the entire Dian Hymer article at Inman News

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