It's been a little while since my last post and unfortunately, there still isn't any significant improvement in the local market. Sure, there are some small signs of change but the reality is that there are still many more homes listing than selling.
Interest rates are close to the bottom (how much lower could they really go??). You can now borrow at 3.59% for a 5 year fixed mortgage!!
First time buyers continue to be the most active, but most buyers continue to take their time and are way more cautious than in recent years. Buyers are also very aware that they have the bargaining power and are using that to their advantage in a significant way.
Buyer activity levels are so low that it can be difficult to really determine whether it would be practical to wait (from a seller's point of view) for a market improvement, or to go for the price reduction and motivate your property, then feel uncertain as to whether it would have been better to wait the market out. Most sellers are very conflicted at this time and I believe the majority are simply waiting for the turnaround rather than dropping their price and regretting it later, even though the price on the next home they plan to purchase is similarly low....
Again, I think most of the people I know and consult with, acknowledge that while we still have a weak market, there are some positive signs in the economy and are hopeful for a turnaround later this year or early next year.