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Potential buyers are losing their enthusiasm for housing
invite response
2014 Aug 12, 11:15pm 660 views 2 comments
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Diva24
2014 Aug 13, 2:18am
The problem is that prices have not crashed enough to be affordable for many whose wages have been stagnant since before the bubble. Home prices were artificially inflated and those who owned or bought during the bubble were duped into believing homes were worth more. An untampered market would have seen those home prices revert back or close to affordable.
http://ochousingnews.com/blog/potential-buyers-losing-enthusiasm-housing/
During the housing bubble mania, everyone wanted to own a house, mostly to capture the gains of rapid home price appreciation. Nobody believed the value of houses could go down, so there was no perception of risk to temper the unbridled enthusiasm to buy a homes.
Now that house prices have crashed, potential buyers know disaster looms if they buy at the wrong time. This increased caution has many buyers concerned about valuation and the obvious manipulations of the market with artificially low mortgage rates and artificially low for-sale housing inventory. This added concern dampens buyer enthusiasm.
Source: http://ochousingnews.com/blog/potential-buyers-losing-enthusiasm-housing/#ixzz3AHH76dUi
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