| Due to the relatively high cost of a home, when the real estate market experiences a recession, it's a pretty big deal. A 5% loss of a Dollar is only a Nickel. A 5% loss on a $500,000 home is $25,000. That can be a lot to expect a seller is prepared to swallow. Of course as a buyer, well, you got to love it. And sometimes a seller just has to move because of individual circumstances, real estate recession, notwithstanding. And this can work out really good for you as a buyer as the real estate recession is driving down prices. You are able to either get “more house” for the money, or spend considerably less on the upfront costs as well as mortgage payments. This certainly puts you in the value proposition viewpoint. Now let's think about this for a second from the seller's viewpoint. If they can't get what they want because of a real estate recession, you can't put a gun to their head and force them to sell. Unless they are in individual dire circumstances, the sellers just to hang on and wait for the market to turn back to their favor. This certainly reduces the number of available homes on the market to you as a buyer. As we have mentioned elsewhere in our series, both Gudrun and Tcat are a little surprised at how the market is currently behaving. We have never seen such schizophrenia in housing prices. In some cities such as Pittsburgh, it seems difficult to shake off recession type pricing. The gains in Florida, have slowed down, if not stopped. Yet curiously, the Carolinas seem to be doing pretty well.
There simply is no single great answer to all, as everybody has such a different yet complex set of needs. If the city you are interested in is experiencing a real estate recession, it's great news for your wallet, and lousy news for having a wide range of choices. As with so many things in life, the operative word here is: compromise. Know what's really important in your home needs. Keep that separate from the list of things you want in a home. Ya know? Doesn't matter how much you yell. We can't hear you. How about you take that energy and direct it to a keyboard. Send an e-mail to feedback@ButterflyLister.com about what topics you would like to hear about. |
