From a socio-economic stand point sellers are essentially being forced into compromising and lowering their listing prices. Buyers can only afford so much in monthly payments therefore they (we) have been waiting on the sidelines for prices to drop to a normalized and fair level. And sellers are not budging on price because they do not want to take the loss of their imaginary profit margins, or because they cannot afford to reduce the price to less then they paid. Therefore we all sit at a stalemate with no one really moving on either side by any noteable amount. The third player at this party has also been sitting on their hands watching and waiting. That player is the feds. By the feds increasing lending rates sellers will be forced into lowering prices to make their homes more affordable for buyers. With the market not self adjusting fast enough it seems the govt has decided to quitely step in and nudge the situation. How much nudging is needed to spur the market, and will it help or hurt the market remains to be seen?
~Just my HO~
I am sure that all Pigginton’s are hoping that it knocks some serious sense into sellers. Game On!!
