Working with first-time home buyers constitutes not only patience, knowledge and compassion. Laying out the blueprint for potential emotional drawbacks inherent in the process is paramount.
How do you prepare to answer the question of distraught home buyer/clients when they lost the house they yearned for? The house wherein the whole family has envisioned filling it up with affection, love and care.
The Question: “Should we wait until next year to buy because we have to recharge our batteries as we feel overwhelmed and down now?”
The culprit for the dilemma was the appraiser’s notation that the property, although zoned as residential, is located in mostly industrial area. Hence, a negative impact on the future marketability is emphasized.
This negative impact on the future sale of their home has been discussed with the buyers prior to making an offer on the house. The location did not bother them. They loved the property.
So here goes my answer: “The drawback I can see from waiting is losing out on the historical low interest rate. Who knows what the interest rate would be next year. Right now it is below 4 percent. Will it be the same next year? Who knows? The next favorable condition is that the price of the houses have not spiked yet. Will it be higher next year? Maybe, as we are seeing inventories getting low. My advise is this… If it is meant to be, it is meant to be.. Don’t get pressured. Make house hunting an adventure. Eventually, the right home at the right time will come along.”
“Do not plant your dreams in a field of INDECISION, where nothing ever grows but the weeds of what if.” ~ Dodinsky
As someone puts it, “Remember, there’s no “right” time to buy any more than there’s a right time to sell. If you find a home now, don’t try to second guess the interest rates or the housing market by waiting. Changes don’t usually occur fast enough to make that much difference in price, and a good home won’t stay on the market long.”
However, statistics show that although change is not moving fast, signs of improving housing market is evident as reported by Real Trends in October 12, 2012, Volume XXVI. No.10.
The report released that Housing unit sales for August 2012 were up 13.2 percent in the Northeast, the strongest showing in the country. The next highest region was the South where unit sales were up 13.1 percent, the Midwest increased by 12.5 percent and the West region saw an increase of 8.1 percent for the same period.
The average prices of homes sold in August 2012 increased 5.30 percent across the country. The West had the best results with the average price of homes sold increasing 12.5 percent followed by the Midwest region at 6.1 percent. The Northeast lagged with the average price of homes sold decreasing by 2.0 percent from a year ago.
“The results for August show that the housing market recovery continues to move forward with increases in both unit sales and average prices. However, as we had cautioned we expect the month over month increases to begin to slide as the comparisons are against results of an improving housing market from the summer of 2011.
The market is being charged by the strong presence of investors and first-time home buyers, but far more move-up buyers are appearing. The shortage of inventory, critical in many markets, is also starting to drive prices upward but is also driving a slowdown in sales as consumers become frustrated with the lack of available homes for sale,” said Steve Murray, editor of the REAL Trends Housing Market Report.
“Unit sales in every region were up strongly in the month over the same period a year ago. Overall, the volume of homes sold was up strongly as market news. The shortage of inventory, critical in many markets, is starting to drive prices upward. National Northeast South Midwest West well as the combination of increased units and pricing drove volume up 17.7 percent over a year ago.
The housing market has now experienced eleven consecutive months of increased unit sales and two months of increasing prices. It would appear the worst is over for now.”
We expect to see more of this kind of market, with increased unit sales and strengthening prices for several more months. The only cloud is the apparent slowing of the general economy, softer job creation and fears of recession in global markets.” Murray added, “The other looming challenge is that we may see a slowdown due to the lack of inventory – which would be a first in the history.
My ending statement at this point is a borrowed phrase which I value immensely as a realtor: Instead of looking at homes through the eyes of an economist, we’re realizing that a home doesn’t solely equate to financial return or measure only to a mortgage amount. Instead. the home is the emotional center of our lives, and it remains a critical component of who we are.”