Pricing Showdown - Between Home Buyers and Sellers
Current market price of homes have reached a "showdown" between the Seller's and Buyer's. I'm calling it a "showdown" because what is meant is that home prices appear to have reached their peak (for now) and Buyer's are showing signs that they have reached a point where they simply cannot afford to pay those prices especially if they keep going up.... An impasse? - you and I both know that something has got to "give" soon.
Even knowing that prices have reached a "peak point" some sellers are still not willing to be flexible on their list price - for now that is, and one cannot really blame them.
And then on-the-other-hand, most Buyer's are not willing to offer a listed price or anything near it because it is being heard, via the buyer grapevine, that potential buyer wages/salaries have not kept up nor have they increased percentage-wise to the level of their "preferred choice of home" affordability.
Either of the three following situations are going to take place in order for the housing market to get out of this stagnation of the current low quantity of home sales, (1) prices need to go down, (2) mortgage rates need to go down in order to make housing more affordable, and lastly (3) the ideal situation for a buyer is for both of the above to take place simultaneously.
Here, it can be said , that Buyer's and Seller's have reached an impasse.... thus a "showdown" in regards to any chance for the "start" of a sale process to come to fruition.
Yes, buyers are "out there" and are willing and wanting to buy a home, but what was affordable and within their budget is apparently not within their reach as of late.
I really cannot blame either party for holding "their ground"...look at it as a chess game in regards as to which party is going to make their move first, well let's wait and see... for now it is a "Showdown".
Oscar Castillo : BROKER - REALTOR®
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