Are Buyers Being Too Stubborn?
The end of the real estate boom seems to be acknowledged by everyone. Well, almost everyone. Some might suggest that many sellers are still in denial as they have refused to reduce their prices. However, as more buyers continue to sit on the sidelines taking a “wait and see approach”, how long can sellers afford to remain stubborn?
Could those sellers showing reluctance to lower their price actually worsen the market? That is what some industry observers predict might happen as home inventories continue to climb and would-be buyers run for the hills.
Howard Glaser, a mortgage industry analyst said, “Sellers have not caught up with the reality of the marketplace despite the proliferation of ‘For Sale’ signs. There is a lag period between sellers’ expectations and the reality of the marketplace,’ and shaking them out of their high-price fantasy ‘is more psychology than science’.”
May be many of those sellers just need a little more time to come to the reality that the party has ended. Rising home inventories and the reality that they maylose more home value the longer they delay may motivate many to reduce their prices soon.
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