It's a Buyer's Market

In a scene from a National Association of Realtors television ad, a family gazes longingly at a house from their collective perch atop a white picket fence. It is their dream home, but they just sit and stare. "They say we should wait," explains Dad.

Then, a confident, professional-looking Realtor steps into the picture to tell us that this line of thinking is nonsense. We are in a "buyer's market," after all.

Is it time to get off the fence? How does one recognize a buyer's market? If you ask a local real estate professional, the answer you get just might be, "Open your eyes and look around."

Real estate expert and author, Blanche Evans, succinctly defines a buyer's market in a recent Realty Times article as one in which there are too many homes on the market for the number of buyers. Homes take longer to sell and prices fall.

This would adequately describe present Lowcountry real estate market. Inventory is high and prices are low. "There are some extremely good buys out there right now," said Craig Ostergard, Sea Pines Real Estate Company's Broker-in-Charge. However, buyers are not taking advantage as would be expected, and this is largely due to the daily deluge of negative news about the economy.

"There's a lot of uncertainty," said John Robinson of Dunes Marketing Group, "Some people are very concerned about their job situations." These are legitimate concerns, but it should be stressed that if your own financial house is in order, home ownership is still a good long-term investment and you might be very sorry down the road if you continue to wait.

"The one certainty that can always be counted upon is that one side of the market will never stay on top forever," said Evans.

The Lowcountry real estate market has a good record with regard to such cycles. "We keep a substantial statistical base to track how our market has done over the past 15-20 years," said Ostergard. "Historically, our market has always responded very well coming out of recessions."

Robinson notes that people tend to follow a herd mentality under the assumption that the popular choice is the right one. Right now that choice is to put off buying a home. "There are very few 'pilgrims' out there right now," he said. "The bold ones who buy in this market are going to look back at their decision and pat themselves on the back. Those who wait are going to be disappointed."

Prices are low, and the selection is wide. Also, interest rates are low and, contrary to a widely held, but misguided, belief, banks are writing loans. It is true that they are being more selective, but this is a good thing because sound lending practices beget a stronger banking industry.

"Today's buyer is savvy, smart and confident. They know the rule to buy low and sell high, and the buyer is in complete control right now - you can be as picky as you want to be. This new buyer knows when to take advantage of a great deal while selection is still inviting," said Robinson.

Let your personal financial situation, needs, and objectives be your guide as always. Now is a good time to buy, and this opportunity will not last forever.

Sources:
http://realtytimes.com/rtpages/20000203_buyermrkt.htm
Craig Ostergard, Sea Pines Real Estate Co. (843)384-8980
John Robinson, Dunes Marketing Group (843)842-0885