I don't like to talk about fear, but it is such a strong motivator. In a time when the interest rates are still low, inventory level is high and buyers can get homes for drastically less than they could have 3 years ago, fear is holding so many back.
I actually feel for these people. Who can comfort them, tell them it's going to be alright and that they're making the right decision when the media provides such negativity around the economy? Three years ago when prices were high buyers were everywhere. Like a plague, everyone had to buy a home.
I received the quarterly statement for my retirement savings last week and felt that very same fear. After speaking to my advisor, he used similar words as I used above, as he compared the psychological reactions homebuyers are having now to the feeling I was having about the dwindling value of my retirement account. I should have found that comforting, that selling now was contrary to what I should be doing with my funds.
Fear is a strong motivator. In either scenario everyone asks the question, how low will it go? When will we see a turn around? And I ask: When we begin to see an incline in the market, with appreciating values, and home sellers begin to realize that they may be able to sell for higher, will that be a good time for you to buy? Now is the time to get a great deal on a home if you are in a financial position to do so.