This recent update from Real Estate news highlights the issues that still remain in the housing market, all of which are relevant in our communities in the Upstate. One of these is around emotion, one is around value and one is around risk, and they are all interrelated.
Because of uncertainty, people have fears in making the decision to sell and accept the hit from the current market pricing. There is a great set of interest rates out there right now that are more difficult to obtain than ever. Makes me wonder if there is a reluctance to lock their funds and those of the secondary market in long term loans at these rates. Finally, those who want to buy up, are still saddled with their current homes who are still on the market. Those buyers who are out there are seeking deals, so a seller looking to turn equity from one house to another is particularly at risk of the lowball offer being a tough issue.
Wish I knew the answer. Any thoughts?
3 Top Home Buyer Deal Killers
Recent surveys have shown that more Americans have a thirst for buying real estate, with home affordability at record highs and mortgage rates at record lows. In fact, real estate buyer agents report a 59 percent increase in buyer inquiries this year compared to last year, according to a recent survey conducted by the Real Estate Buyer’s Agent Council.
So what’s preventing some buyers from making it all the way to the closing table?
REBAC surveyed its buyer agent members to determine the top issues preventing home buyers in their local markets from completing a home purchase. The top three obstacles identified in its 2012 survey are:
- Economic insecurity
- Difficulties in obtaining financing
- Problems selling current home
The number of home buyers citing difficulties obtaining financing has fallen markedly in the last few years. In 2011, 65 percent of home buyers cited this as a big hurdle to purchasing, and 61 percent cited it in 2010. This year that number has dropped to 49 percent, as economic insecurity overtakes it in having the biggest effect on stalling home sales, according to the survey.
In 2011, the top three issues cited by buyers were difficulties obtaining financing, problems selling a current home, and holding out for lower prices, according to the survey.
Source: “Trend-Spotting for Real Estate Agents: Where Do We Stand Today?” RISMedia (July 7, 2012)
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