Remember how depressing it was to read the headlines the last few years? It’s no wonder homeowners were willing to let their homes sell at bargain basement prices. This year, the tide has turned. If you’ve been paying attention to recent headlines, you’re probably feeling much more confident with your decision to purchase real estate. Think about the recent headlines:
“As Fears Recede, Dow Industrials Hit a Milestone”(Peter Eavis, The New York Times 3/5)
“U.S. Housing Inventory Continues to Plummet”(David Barley, World Property Channel 3/7)
“Job Openings Increase as U.S. Labor Market Improves”(Alex Kowalski, Bloomberg 3/12)
“Home Sales Hit Highest Rate in 3 Years” (Chris Isidore, CNN Money 3/21)
“Bernanke: Low Interest Rate Policies Benefit Trade”(Martin Crutsinger, Star-Telegram 3/25)
“Home Prices Rise at Fastest Pace in Over Six Years”(Nick Timiraos, Wall Street Journal 3/26)
Now how do you feel? I’ll bet you feel pretty good about buying a home. But, you’re forgetting that all good news for sellers is bad news for buyers. Get the picture? Maybe you don’t. You see, sellers are reading positive headlines every single day. They are becoming much more confident in their ability to sell. The greater a seller’s confidence, the less willing they are to negotiate a lower price. What does this mean to you as a buyer? Every positive article increases the price you’re likely to pay for your next real estate purchase.
You have two choices:
- Buy now, while prices are still very attractive.
- Wait to be bombarded by many more positive headlines and pay a lot more.
Which do you think will work best for you?