Why Are Buyers Dragging Their Feet

Why Are Buyers Dragging Their Feet

Why Are Buyers Dragging Their Feet - Full Transcript Below

alice Lema: [00:00:00] Well, Hey, real estate fans, Alice Lema, I work for John L Scott in beautiful Southern Oregon, and today we're going to talk about, we're calling it the buyer's revolt. Now, this has actually just been published by Bloomberg on the national news this week. So this explains a lot because we've been experiencing this in Southern Oregon for a few months now Bloomberg reported today.

And I quote the U S housing market long crippled by an inventory drought is finally starting to see listings rise, but now in many places, the buyers just aren't showing up. Sellers are grappling with the fact that higher for longer rates are choking off demand for what's typically the key season of the market.

And more of those owners are cutting their asking prices than any other time since November 2022, as inventory grows stale. According to Redfin, and then I want to throw one more in Dr. Lawrence Yoon, who is the chief economist for NAR, was also quoted this week saying that it's a very [00:01:00] disappointing spring, spring selling season.

So what's happening is the buyers are battle weary. They have been through so much in the last 18 months. And the interest rates are not going down now. So they don't, they don't have the wherewithal to keep getting out there emotionally and financially. You have to keep getting pre approved when the rates go up and, and they're up between a 6.95 and seven something this week, right now, 30 year fix. That's what it is. And I know a lot of us older people think that's not that high because we went through something else higher, but that's where we're at in. It takes time for the buyer's finances to adjust. So now it's getting to be the seller's problem.

See at first the interest rate issues were the buyer's problem. Well, now it's been long enough. It's starting to affect the sellers. So if you're a seller, we're going to give you some specific tips. And if you're a buyer, we're going to give you a couple of tips as well. But [00:02:00] Southern Oregon, in particular, we've been experiencing this phenomenon for a couple of months.

It hasn't been every house. It hasn't been every neighborhood, but it has been enough. Our normal open houses, when we have open houses, they're not very well attended like they used to be. We're not getting as many phone calls for showings. We're not getting as many showings in some cases. We're not getting showings at all.

So then we do price changes and then perhaps maybe still not enough activity. So sellers, sorry, but here's here's what you're going to need to do. You're going to need to go back and do a big review of what the feedback was from your house, what the open house feedback was, what the other agent said what the buyer said.

And then you got to be really super honest about where your neighborhood is is selling, not where people are listing. I know a lot of sellers say, well, my neighbor listed, well, that doesn't count. It's where they're buying. [00:03:00] And then you have to have a real heart to heart with yourself about the price. And the repairs and all the stuff that goes along with selling your house.

You need to have your house in perfect condition right now. And you need to be priced right. And if you're not willing to do that, then consider taking your house off the market, waiting, waiting out this cycle, wait for a different cycle. The other thing you do is rent it out, but you need to do something.

You either need to be honest with the condition of your house and the prices, or you need to take it off the market sellers, or you need to rent it out. Okay. I'm sorry, but that's kind of where we're at. Buyers hang in there. Try not to lose hope. Buyers keep writing offers. I try to write the offers realistically for the neighborhood.

It's okay to write lower offers, but don't gouge people right now. Go in and be reasonable if you can. And I'm not saying overpay, I'm saying be fair right now, [00:04:00] buyers. The goal is to get a house. All right. Get a house. That's the goal. Or you could sit out. I don't think that's a good idea right now.

Southern Oregon historically goes up in value, even if it's in fits and starts. Look at how much people have made on their houses in Southern Oregon. In the last five or 10 years, that's a different podcast, but we will go back and talk about that. Southern Oregon is a destination location. So buyers, I encourage you to go out while the prices are a little soft.

And even though everybody's grumpy, buyers and sellers are grumpy, make your deal, get your house and be happy. And then you buyers can start having equity build up because you bit the bullet, went through the chaos and got it done. Okay. And everybody buyers and sellers remember it is weird out there.

It's hard economic times. There's a lot of uncertainty in the world and that just [00:05:00] gives everybody the heebie jeebies, but hang in there. Okay, and in the meantime, call me, text me 541 301 7980, 541 301 7980. This is my bag. I work both counties. I work many, many different kinds of markets, rural property, riverfront, also do condos will occasionally help an elder with a mobile home in a park.

So, you know, I do it all, but also am available to just chat so that you can get some perspective. And some good consultation before you make a decision, but we want to help you with what's next in your real estate life. Okay. So give me a call, give me a text. And if you want to hear what's going on specifically in Southern Oregon, all three counties, we do have a market statistics video this week.

You can check that out. Okay. Have a beautiful Southern Oregon weekend. Hug those you love. We'll see you next time. Bye now.

Post a Comment