Potential home buyers are offering less for properties amid the turmoil in the stock-market and
renewed economic concerns.
One prospective buyer lowered bids on two separate homes due to stock-market concerns. His
initial bid of around $700,000 for an $800,000 listed home, eventually dropped to $650,000 even though the seller had dropped the asking price to $750,000. Buyers seem to be looking for a steal.
Pressure continues to mount on home prices, as buyers look to use any point of leverage they
can get to reduce a price. It’s becoming painfully clear that fewer people are looking to buy homes than
even a few weeks ago.
Slowing housing activity will also make it more difficult to sell your home as well. One factor that
is hurting housing demand is that buyers don’t really need to sell their home before purchasing a new home for sale- not needing to procure the money from a home sale in order to put a down payment on a new
home.
Newly released data indicate that the nation is gripped by a buyer’s market. Previously owned
home sales declined 3.5% in July from the previous month, even as mortgage rates have decreased to
their lowest levels in half a century.
The Federal Reserve made a pledge last week to keep short-term interest rates close to zero for
two years. This could make buyers less likely to strike home deals. The Fed has essentially assured
buyers that they aren’t missing out on low interest rates if they wait.