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"The Long Island Real Estate Market Scares Man to Death!" I can see the story newsline now! A friend of mine wants to buy a home. He earns a very good salary but at the end of the day, he's scared to death of...just about everything, from losing his job to his wife not ever finding employment.
Now while the past few months have been extremely busy for many real estate agents (contrary to common belief), many of us talk amongst ourselves and we are still seeing many buyers on the fence. There is indeed a huge pent up demand out there waiting to strike.
The only problem is, they're scared [DUH].
Like my friend, buyers today are just unsure about the market, employment, and the world in general. As a therapist, an obstacle to someone moving forward in their lives, by changing what they do and how they manage their lives, is called an impasse. An impasse is the fear of the unknown - the fear of what may occur if changes take place that alter how one deals with their lives. Take for instance, a woman who stays with an abusive husband (or vise versa). From the outside, we judge that situation and say, "Why doesn't she just leave him?"
Impasse.
Buyers right now, are the "abused" spouses...so to speak. They're used to landlords taking their money and feel more comfortable with this current situation - they know what to expect.
Until fear is replaced with some form of confidence in the market and job security, I firmly believe that 5 in 10 qualified buyers will remain on the sidelines, watching...waiting.
This image is where buyers are right now. With mortgage interest rates so low, buyers are riding a see-saw or sorts. Trying to balance out the perfect time to buy. One thing is for sure, and it's that right now, interest rates are at an all-time low and I've written extensively on mortgage interest rates.
Even with a fantastic 1st time home buyer tax credit (dollar for dollar credit - ask your cpa), many buyers are still not pulling the trigger.
But...more are starting to and this means, that as a buyer, the homes that are prime buys, could be all dried up by the time the most fearful come around and start to get involved. What's now on the market, if it's a "good" buy, will be long gone six months from now.
The greatest challenge for people facing an impasse is moving forward when every part of their body and mind is telling them to pull back. Hopefully, if you're reading this and you want to buy, you'll consider signing up for a listingbook account to at least find out what's out there.
Thomas - Fear causes decision paralysis for many people. There is a great deal of pent up demand with home buyers, but many great opportunities await those that are willing.
Hi Thomas. I was attracted by your title because I grew up on Long Island, and wanted to reach out to a fellow Long Islander.
You expressed this phenomenon very well, and I love your graphic. I'm finding the same thing in my Monmouth County, NJ market. The buyers who are taking their time about making an offer finally come around and are shocked when the property they've been contemplating has just gone under contract. Now that they they've missed out on it, they firmly believe it's definitely the best and only home for them. The heartbreak is so sad, but ultimately, motivating. . . to move faster the next time around. Let's hope the buyers who are at an impasse get the message before this happens to them, too. As we know, the best houses that are priced right are selling!
Best of luck
Judy and Lynn,
I hear you! I hosted the first open house today at a listing that is priced right in a great town - 60 people showed up. It was insane.
I have two offers - that's great right?
I'm looking at this house - which also has had 29 showings in 6 days.
I have two offers - is that really that good?
Given the market we're in - I say absolutely - but it does show that buyers are not willing to pull the trigger - period.
I'm going to get a 3rd and 4th offer probably within the next 24 hours, but we'll see.
Best of luck to you! And if you know anyone relocating - please keep me in mind - 7 days a week - I'm up and running!