Thursday, August 10th, 2006 at 1:25 PM
What’s a Buyers’ Market?
"Buyer’s Market" is a term we’re hearing more and more, now that the real estate slowdown is making front-page news.
Here’s a definition of a ‘Buyer’s Market’:
A ‘buyer’s market’ is the psychology that causes buyers to want to WAIT AND SEE WHAT HAPPENS. Unless they find the perfect house at the perfect price, the waiting leads to indifference, which causes the fence-sitting to become very comfortable for buyers.
As a result, there is mounting pressure on sellers to lower their price, to entice the buyers off the fence. This creates the proverbial ‘downward spiral’, where each sale is lower than the one before.
This is the current state of the market, and why the number of sales has slowed considerably.
If you are trying to sell, and are determined to hold out, I’d urge you to reconsider. It can be a humiliating ride down, price-wise.
It is better to get out, than to hold out.
Posted on Thursday, August 10th, 2006 at 1:25 PM in Thinking of Selling? | 13 Comments » | 
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