A number of buyers are out there waiting. Waiting for prices to fall, waiting for real bargains, waiting to see what the market does. But is this a sound strategy? I’d say it depends on your local market dynamics. more
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Reno Ignoramus
Depends on local market dymanics indeed. And in this local market down is the dynamic.
Back on May 23, I posted about MLS # 60012299. This is on Mayberry Drive. On May 23 I noted that this listing had come on at $600K, then dropped to $558K, and had then dropped again to $548K.
Well now almost 3 months later it was again dropped to $538K, and now it is down to $510K.
This listing has been on the market almost 270 days and is still overpriced. It sold originally in January, 2004, for $349,400.
270 days or so languishing on the market, a $90K haircut on the asking price, and still no offers.
This listing is a poster child for the wisdom of sitting on the bubble in Reno.
Reno Ignoramus
“(T)his most egregious of housing cycles has only begun to correct. The housing market only peaked around last October, so we are only about nine or so months into the downturn. Home sales during that time are off about 20%, which is causing this wailing and gnashing of teeth.
But the average downturn in the housing market has lasted between 26 and 52 months…(d)uring those declines, home sales have plunged an average of 51%. By historical standards, we have a long way to go, and a long way to fall.”
Barrons Magazine, “For Whom the Housing Bell Tolls”
August, 2006
Bubble Sitter
Well, I guess Bubble-sitting is better than filing bankruptcy and foreclosing when an adjustable rate mortgage comes due at a higher rate (or make that TWO ARMs like so many middle class folk are tied up in right now). There is no way you are going to catch most folks who are paying attention to the national economy doing that to themselves. Owning a house is just not worth it at those costs.
Elaine Hirt
I find this such good news. I’ve been wanting to purchase a home for the past 15-16 years but didn’t have the income needed to support this very important purchase. Now that I have the income and the credit score, prices are much, much too high to even consider purchasing.
I am diligently paying off as much as possible of my debt load in preparation to purchase next spring. Keep those prices coming down! The dream just might come true for me.
BTW-I love this blog. It’s straight-forward and very easy to understand. Real life examples instead of theory. Thank you!
Larry Cragun
Great article. Pinpoints real current mentality. Lar
Diane Cohn
I would say that the local market peaked in July 05, so we’re about 12 months into the downtrend.
And by the way, thanks everyone for reading and contributing to the blog!