What is buyer confidence and what does it mean? In the Ithaca market there is a bit of a conundrum. We are a local market that has and continues to experience overall stability. Yes we have experienced price corrections, increased inventory, some lower appreciation, yet all around us we hear and read. "Don't buy", "Why buy when people are losing their homes", "pricing will plummet", "There are only bogus mortgages", "trust no one".
Buyer's do not know who to listen to, or who to ask. This causes a lack of buyer confidence. The people who are normally out there buying homes are nervous and hanging back. They are online looking, seeing homes, shopping but not making buying decisions because they don't know what tomorrow will bring. This makes sellers reduce prices, offer incentives, and cater to the buyers. This is meant to increase buyer's confidence or at least get their attention. Where is the tipping point?
Who knows when pricing will shift but if you are in the market for a new home there truly is no better time to buy in this area than right now. FALL 2008!!! The properties in Tompkins, Cayuga, Tioga, Seneca, Chemung counties are ripe, sellers are considering serious offers but there will be no "firesale". We are one of the top 10 cities to live in, we have growth, we are a solid college town, we have a desirable second home market with the Finger Lakes region, we are central to many other cities, we are educated, and we atrract so many people in all age groups for so many different reasons.
The State of the Local Real Estate Market. High inventory and few buyers. For the most part homes are on the market for the normal reasons, job relocations, downsizing, upsizing, moving closer to family, some for taxes and high utility costs but it's not because of overwhelming amount of foreclosure properties, and not because of neighborhoods of new builds sitting vacant and competing with depreciating home owners who are running scared. There were not speculators buying up the market, who are now bailing. We are a normal market with tremendous opportunity.
What can you do as a buyer to get buyer confidence? Educate yourself, read and ask questions. Get qualified for a secure mortgage with a local lender. Find a local REALTOR you trust and who is experienced. Look for the ABR designation (Accredited Buyer Representatives), these agents are trained, expercienced, will advocate for their buyer clients and navigate them through the real estate process and the local inventory (every listing available including FSBOs) to find and negotiate the best possible price and terms for their buyer client.
With buyer confidence you will find your way home.
