The other day I read an opinion piece that I really couldn’t agree with. The writer expected a pause in the pace of the residential market upturn now that many of the most obvious bargains have been snapped up. He thought that was to be expected, and that a further rebound would be likely to follow. His idea was based on the notion that many otherwise well-qualified prospects – buyers who may have narrowly missed the bottom of the market — would now be waiting for prices to fall again. They would only reappear once they realize that those super bargains were a once-in-a-lifetime affair.
I’d have to say, ‘not so much.’
In my experience, individuals who are even half-serious about buying homes in the Kenai Peninsula area are usually not motivated by squeezing every cent from the bottom line. Pricing is certainly a factor, but just one of many. When you are impressed with a neighborhood, or its school district, or the particularly appealing floor plan of a particularly appealing house — those are what prompt you to have your agent write up an offer. Buying homes is not like supermarket shopping. You don’t expect any Double Coupon Days or Two-for-One Sales. You are finding the best place for your family to live — it’s a different animal.
I also suspect that the author had overlooked a major factor (possibly the major factor) that has shifted since the start of the year. It’s at least partly psychological.
Everybody has to live somewhere, and when you evaluate whether your own best course is to buy or rent, you want to know that the investment portion of the purchase isn’t a foolish one. There is a huge difference between buying homes in a falling market and buying homes in a flat or rising market. When an investment is tumbling in value, it just feels like you should wait to buy it. Even when it’s clear that you are getting more than your money’s worth, it can feel as if you are being self-indulgent by acting instead of waiting.
That was a pretty substantial roadblock throughout the whole period following the financial meltdown. Then, as the market bottomed out, I think it began to disappear from peoples’ minds. Now that the national press is reporting steadily rising prices, it’s gone entirely (last week, for instance, Fannie Mae raised its original home sales forecast for this year by another 5%). If I am right, that is a very big deal.
Whether you are scouting for a new area home or thinking that the time is right to list your own property, I am here to answer your questions and help you get started. Call me anytime!