Yes, no question those that can wait to sell, will wait. But life has so many uncertainties, and we’ve all seen how much of our local economy has been driven by this housing market boom. A few more contractors, loan companies, real estate firms etc., affected, and people who think they’re ok will not be. The ripple effect will be huge. People stop eating out, getting their hair done, buying clothes etc., so the whole economy feels it. (And, just think what one divorce will do in every zip code!!)
Every week we’re watching those short sale numbers jump up. 2005 didn’t even have short sale figures. Listings would sell in a matter of hours! Now, listings are sitting, and sitting, and sitting. So, our sellers are different. We’re seeing people that need to sell, but unlike 2005, they can’t.
And, the buyers are all like me: they’re saying, ‘gee, things have really turned around. Exactly how low is this thing gonna go?’ In 2005 buyers were saying, ‘I’d better buy now or get priced out forever.’
So you’re right, no one knows how this will play out, but my money’s on further easy price declines. Buyers have nothing to lose by sitting out the market this entire year.
