Buyer after buyer is espousing the same litany: The real estate market is against them. Seems “every” well-priced listing becomes a bidding war out of their price range. There are no “deals” out there for them.
Well... according to several surveys conducted in mid-August 2012... "Many buyers who emerged from hibernation this spring eager to take advantage of low rates and near-bottom prices now seem to have become demoralized by the intense competition for a limited selection of homes for sale," the company said today in releasing the results of the survey, which was conducted Aug. 16-22. A survey of 982 prospective buyers in 19 markets by a tech-based brokerage shows an increasing conviction that home prices are on the rise, and a growing reluctance to get into multiple-offer situations.
Basic evaluation includes whether it’s cheaper to rent versus buy over a ten-year period. It seems to be at a break-point of being easier to rent right now.
Seven in 10 of those surveyed said they'd encountered competition on at least one offer, and 31 percent said they'd back off when faced with multiple-offer situations, up from 28 percent during the second quarter.
While 46 percent believe now is a good time to buy, that's down from 56 percent during the first quarter. And 32 percent think now is a good time to sell, up from 13 percent during the first quarter -- further evidence that would-be buyers think the market may be shifting against them. Then there's the matter of where you live.
The National Association of Realtors said today that its index of pending home sales posted its 15th consecutive month of year-over-year gains in July, reaching the highest level in two years. While 61 percent of those surveyed believe prices will increase, up from 32 percent during the first quarter, the percentage of would-be buyers who are worried about the economy also grew from 20 percent during the first quarter to 27 percent in the latest survey.
NAR Chief Economist Lawrence Yun warned that a limited supply of homes for sale is constraining sales - all regions except the West, which is experiencing "an acute inventory shortage" - saw monthly increases in contract signings. At 101.7, NAR's Pending Home Sales Index was up from 99.3 in June and 90.5 a year ago. The index surged above the baseline reading of 100, established in 2001 -- the first of five consecutive record years for existing-home sales, that also coincides with "a level that is historically healthy," NAR said.
The index is at its highest level since April 2010, which was shortly before the closing deadline for the federal homebuyer tax credit. The National Association of Realtors said today that its index of pending home sales posted its 15th consecutive month of year-over-year gains in July, reaching the highest level in two years.
So does the market maintain the actual value of the homes getting multiple offers? Is it merely an adjustment for the market constraints of availability vs demand? Yet, despite all the indicators, buyers are pushing ahead, striving to obtain their share of the Great American Dream. After all, how long will the low mortgage rates last?