In recent years there has not been a better time to buy a home, so what are people waiting for?

“There’s No Better Time to Buy a Home, So What Are You Waiting For?”

It is not a secret that home sales around the nation have declined from peak levels reached in 2005. One can speculate about the reasons for the downturn, but I’m interested in finding answers to why it has continued despite solid fundamentals.

During recent discussions with realtors, I have discovered that there are consumers actively looking to purchase homes but that they don’t have any sense of urgency.

Therefore, I pose this question to our readers, “What are the reasons that many actively looking home buyers are sitting on the sidelines, seemingly waiting for something to happen? What is it that they’re waiting for?”

Home buying fundamentals have arguably improved since the pinnacle of the housing boom. Interest rates are at very low levels, high leverage loan programs are still available for first time buyers, and sellers have negotiating power. Therefore, all the micro economic reasons to purchase a home remain.

On a macro economic scale construction costs have increased considerably over the past decade and show no sign of slow down as raw materials and energy prices continue to rise. Additionally, land is a non-renewing asset; there is a limited supply and infinite demand. Therefore, as construction costs increase, land becomes scarcer, and the region continues to realize population growth, real estate prices should continue to increase once we work through the current supply.

The current supply of homes on the market is high which has made today a buyers market. However, building permits are down to a record low and sellers are experiencing pricing pressures; both of which will bring supply back in line with demand sooner than later. When that happens I expect a new real estate market to emerge that promotes and sustains equilibrium between buyers and sellers.

Therefore, what are potential homebuyers waiting for? When the equilibrium is reestablished buyers no longer will hold the negotiating power currently available. Additionally, if the dollar continues to weaken peoples buying power will be even less.

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Darris Cassidy, VP of Finance. Woodhill Homes:

Darris Cassidy has worked in real estate ever since 2002. His background in loans & banking for commercial real estate construction and financial services led him to Woodhill Homes, where Darris manages a team of employees responsible for all of the financial handlings at Woodhill Homes. Darris frequently writes about real estate for the Woodhill Homes blog.

Woodhill Homes has several Bend & Central Oregon real estate developments. Woodhill Homes communities like Woodhill Park and Bend10 feature environmentally responsible homes and all of their residential real-estate developments are geared toward the entry-level & move-up markets.

For more information about Woodhill Homes at www.woodhillhomes.net, and keep in touch with Central Oregon real estate trends on their blog at www.woodhillhomes.net/blog/.