Buying Fear

flip_it_fast · #1 12-02-2010, 05:33 PM

The market conditions are prime for buying a house right now and yet according to a report many people have buying fear.

Right now houses are affordable, there are low interest rates and tons of choices on the market.

A lot of people feel though that they will be bale to get even better deals if they wait. Some are also worried about making the payments.

I actually like fact that some are worried about making payments because that was a big cause of what crashed the housing market. Too many people were unable to make their payments.

Quote:

It's perfectly natural that they should feel that way in the wake of the housing bust, said Lawrence Yun, the chief economist for the National Association of Realtors. "It's like when the stock market is crashing," he said. "People are waiting to see if deals will get better."

This isn't good for the market though. It's going to aid in making it a long recovery.

flippinout · #2 12-02-2010, 07:46 PM

One would think though that if they wait, the prices of homes will go up and so will the interest rates.

Plus, I think that too many times people get caught up in buying a house that is more expensive just to keep up with the proveribal jonses. They need to rethink that issue and just buy what they need and make sure it is in an area where it would readily sell if they later decided to move.

Yea, its a scary time right now but if a lot of people would stop living beyond their means and get down to basics again, life would be a lot easier on them.

JaredfromIndiana · #3 12-07-2010, 10:22 PM

I think it is a tough balance between fear and opportunity right now. Interest rates are as low as they have EVER been, but at the same time the economy has frightened some buyers.

When my buyers tell me they want to wait until the market hits bottom, I ask them for their crystal ball because I sure could use it. I never try to push somebody to buy if they aren't 100% comfortable and ready.

CalRehabber · #4 12-17-2010, 10:44 PM

I hear "I don't think that house prices have reached bottom yet, I'm waiting a little longer" from quite a few people I talk to in my area...

If they only knew..

--Mike

badmomma · #5 12-17-2010, 10:47 PM

I hear ya there. People really aren't getting the fact that the prices are going to rise and quickly. Those rock bottom prices are here and now and the future will bring us hard to sell homes.

This won't last forever so its buy now or loose out if you ask me. There are lots of houses for really cheap. You just have to watch what your doing and maintain a budget.

flip_it_fast · #6 12-18-2010, 01:18 AM

I can understand from a buyers standpoint how they feel. A house is a lot to take on! Theres a lot that goes with it including all of those payments. But they really need to understand that they are going to miss a golden opportunity if they wait.

As I said before, if they don't feel that they can make the payments then of course they shouldn't be pushed. But if they can they need to act now or they will pay a lot more in the long run.

It's as if they think the grass will be greener in the future! Nope, it's as green as it's gonna get right now.