I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

I agree that anybody who bought at the peak is f’d.
They will have to eat a big loss, or just stay put for the next 5-10 years. Then again, anyone buying a house should’ve planned on staying there 7-10 year minimum anyway.

I do believe that are a good number of people on the sidelines such as myself. Saving up a large downpayment, waiting to pounch when opportunity arises. Question is are there enough of us to offset the impact of the stuck “wanna be” move up buyers.

Bubblesitter

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.

I would have to agree that there are not going to be many move up buyers who bought at the peak. I know people that bought at/near peak with enough down that can sell a small profit, but refuse to sell until the market goes back up. They want to move up, but can’t stand selling at a loss. You can add 2002-2004 buyers to the list depending on where they bought. Some areas are already selling at or near 2001 levels. Without equity these buyers will not have a down payment. Historically move-up buyers put 10% or more down and stay for about 7 years while paying principal payments and enjoying the benefit of wage increases.