Sellers can't face reality of housing market decline
One of the interesting puzzles of the housing boom and bust is that the price of homes has declined significantly, but not as precipitously as the volume of home sales has. At least for now.
Experts say that that's because sellers aren't yet ready to accept that their homes have declined in value -- primary residences are more emotional investments than mutual funds. The laws of supply and demand aren't as cut and dry when it comes to housing and the result is a glut of homes for sale and few buyers willing to take the plunge, betting instead that they'll be able to wait and get in at a better price.A few things come to mind from a home buyer's perspective: first of all, if you can find stuff at compelling values, I'm not a big fan of waiting in the hope that prices will continue to fall. Some properties are available at prices that make them extremely attractive as rental units --those ones probably won't last long and, as long as they can generate compelling cash flow, they're not likely to decline further.
Second, with home prices extremely volatile of late and volume in the toilet, market prices can be difficult to establish, meaning that there tends to be a wider variance between home prices right now. Many homes are way overpriced. Look at a lot of homes and study the market extensively, or be prepared to overpay for a property listed by a seller who's committed to her price, not the market price.
Most of all, find a good buyer's agent who has experience in the area and has been through all kinds of different markets..