Wednesday, November 30, 2011

The Dwindling Pool of Willing, Qualified Homebuyers

At the moment, the Charlottesville Area market tracks the wider housing market at a lagtime of 12-18 months.  Economists predict the rest of the US will see 10-20% further price declines in the near term.   Anybody who is thinking of buying right now may want to consider: What would halt the Charlottesville area market from aping the continuing price slide?  The lack of definitive answers may indicate the need to make an offer in line with the future price declines.

And this doesn't even take into account the growing disaster in the EuroZone.

From the embed below: 'the pressure to reduce the selling price of existing homes to compete with new homes on the market continues unabated.  The current level of price "reversion" still has quite a bit more to go before reaching the long term median home price levels.   With personal incomes on the decline, credit conditions very tight and inflationary prices continuing to rise the "affordability" of housing may continue to remain under pressure for some time to come.'

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