Thursday, December 21, 2006

Is It Time to Buy?

The New Hampshire Association of Realtors (NHAR) recently addressed “buyer hesitation” in the homebuying market. They noted that many buyers, particularly those who are not in a hurry, are hesitating purchasing a property because they believe that prices are likely to be lower in the near future. According the the NHAR, this represents a significant shift in the psychology of home buyers from a year or two ago (when most of them thought home prices would keep rising).

The question they try to answer is this: When will this hesitation-leaning consumer sentiment regarding housing start to turn into a now-is-the-time-to-buy attitude? They concluded that:
  • if average wages continue to rise, and
  • if second home buyers remain in the picture
then the consumers’ perception is likely to be that home prices are stabilizing and it's time to buy.

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