So why is the market slow? I believe there are a number of reasons which are all contributing to the slowdown. One, is the total number of buyers out looking for a home. It’s more difficult to qualify for a home loan than in the past. The banks and mortgage lenders are being very selective and stringent in the pre-approval process. This will limit the number of buyers in the buying pool. Also buyers are increasing there search area and looking in multiple communities. In the past, a buyer may have had two communities they concentrated on in their search area. Today, it's not unusual for a buyer to have three or even four other communities, thinning the flock of buyer even further. Lastly, until inventory decreases we'll have a slowing of the market. It takes buyers a lot more time to view all the homes in their price range and as more homes come on the market, buyers are reluctant to "pull the trigger" because, the buyer feels a better home could be just around the proverbial corner and are waiting to see if it will come on the market. Lastly, buyers are also waiting for prices to drop even more.

Home pricing can compound the issue because while new listing are coming on the market, sellers have a tendency to price their homes a little hirer than the current market will bare. I'm not saying the homes are being over priced but, sellers are pushing the limits at the beginning of the listing period. If a seller chooses to over price their home in the beginning, then as the listing sits, small price adjustment are necessary before a home may attract a buyer. The first price reductions on a property may be considered and assessed in the second to third week in the listing period, again adding to the slowing market place.

I believe the market place is poised to get stronger. As employment is on the rise and more people feel more secure in the jobs. For additional information regarding the current market refer to my housing reports for Single Family, Condominiums and Multi-Family properties.