P.L.
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Selling houses doesn't just depend on the price someone is willing to pay but on whether or not they can get the loan of that size. If everyone held out for the price they wanted then eventually loans might start being offered otherwise the market would be totally stagnant but, as people are now wary of making deposits (which others use to make loans) the whole thing is very unclear and could remain so for quite some time to come I think.
I intend making some large purchases soon which I would have put off for a while, but, with such low interest rates for savers prices will increase in real terms so I might just as well buy now. This means less in the bank for the bank to lend out. If huge numbers of others are thinking as I am it would affect the market moreso. |
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Guillem T
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No price reductions, no sales with all the cost & financial consequences for the house sellers, stepping up their crisis of staginflation. |
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Chloe R
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1st time buyers wont be able to afford to buy, and they are the ones who will get the market moving again! |
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kenoplayer
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The people who still have good credit ratings and are looking to buy will simply wait until the sellers do lower their prices. The sellers would basically screw themselves. |
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Eddy T
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The house market has stabilised. There are more buyers in the market. House price may increase. |
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D
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None because no one would purchase the house. |
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Sukhjinder S
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It is a good question. Well if I take your statement as it is stated I would say it would be the new pricing as a buyer after a short period. Means after a few weeks or months I as a customer will set my brain that these are the present prices.
And if I am really looking for a place to live or invest in I will go and buy. This has been happening in the consumer market since all these years. Its a simple supply and demand equation.
When the supply will decrease (assuming nobody is ready to sell at lower prices) the demand will increase because the new buyer will go from there (new pricing).
But the market doesn't work this way. We have more genuine home buyers than investors in such a situation. Investing has a simple formula and that is "you make money while you buy not while you sell".
Hope I could put some light on the matter you are concerned about. |
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glenn
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If every house seller could afford to make their house payment on time AND do this we would have a strong housing market.
The problem is that a huge number of people are unable to make their payments. That makes them desperate and that forces down the prices.
Here in North Texas there is a neighborhood that attracts older couples. Almost everyone bought their house for cash. There are no foreclosures and the demand for that neighborhood is very strong, so the prices there have stayed up very well. |
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I Buy And Sell Houses
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If every house seller refused to lower their asking price, transactions would cease. The market largely depends on negotiations, and if one side refuses to negotiate, the market grinds to a halt.
Your implication might be that prices would stabilize. Not correct. If I'm only willing (or able) to pay $300,000 for a house and a seller refuses to budge from $350,000, then I'm not going to buy. Period.
Hope that helps. |
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rodders
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None it's all relative. Just the same if we all lowered by 50% |
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