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Thomas Wright

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If this is a buyers' market, why isn't anybody buying?

12-26-08
Thomas Wright

SALT LAKE CITY, UTAH REAL ESTATE

When the real estate marketing was booming a few years ago many people were buying real estate without evening thinking if the value was there, what the market would do, if the location of the real estate was good, etc etc. The irony now is that the factors then were all against people and now that it is the best time to buy in our lifetime most people won't do it despite all the factors being in their favor.

Fear is driving people to hunker down and wait until we "hit the bottom." The problem with that thinking is that the only way to know that we have hit the bottom is to see an upward trend and by the time anybody sees that you have already missed the bottom. Most people following the herd instinct and the instinct right now is to wait, fear, falter, pause and hunker down.

I am not advocating reckless buying by people who are not in a position to buy. But, I believe that there is significant pent up demand in the market and despite bargain real estate prices, the lowest interest rates in 50 years and a glut of fabulous inventory in the Utah real estate market buyers continue to wait for something that is already here.

The fact is that the economy is the longest recession we have seen since the 1970's and will probably end up being the worst since The Great Depression in the 1930's. Why are few people not buying in the best buyers' market we have seen in our lifetime but buyers were lining up to buy in the greatest sellers' market of our lifetime? People were overpaying, overbuilding and generally reckless with real estate decisions that are now costing them dearly.

I suppose I may have already answered my question but some of my clients are continuing to buy and will do amazingly well when the real estate market, for no good or predictable reason, bounces back and leaves many people on the sideline asking, "Why did I NOT pick up some bargain real estate when prices and rates were incredibly low and sellers were extremely desperate to sell!"

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