How many buyers are still waiting to buy a house? According to today’s Gazette newspaper fear of job loss is keeping 16% of the buyers from the market. According to Realtor.com 1/3rd of all buyers are waiting because of job concerns.

I think the number is closer to 60% of all buyers are waiting because of job concerns or thinking that the market has not dropped yet. I spoke with 2 potential buyers yesterday and both feel the market has more drop in it. I asked them why they felt that and both quoted national news sources such as T.V. and USA Today. I countered with local information and hopefully that is enough to move them. This week I’ll know.

In Gary Keller’s book “Shift” he talks about how buyers do one of two things. They wait for the market to come to them or they go to the market. The latter always gets the better buys because they are constantly in the market. They are not greedy but prudent. No one knows where the bottom is. No one knows where the top is. In the book “Shift”, Gary uses clear graphs that illustrate this. It will be something I will use starting today.

The other reason I feel 60% of buyers are waiting is motivation. I do feel job concerns play into this. Many people are tire kicking and trying to solidify their income and debts. That is a good plan. Many buyers understand that financing is difficult. But we need to educate them that financing is still very possible. The VA & FHA options allow for 0 -3 ½% down payment. Many buyers feel they need 20%. Educate them.

When we talk about education it’s not just about financing. A good realtor will educate a buyer that a good deal is a priced well home in good condition. It’s not always the bidding war on a foreclosure. Sometimes it’s worth the wait for a short sale. A good realtor educates both buyer and seller on the local economy. Colorado Springs is not the same market as Ft. Lauderdale, Florida. We have a stabilizing market due to military and Ft. Carson expansion. We are not the condo foreclosure capital that is reflected in national news. We and you are all in our local markets, educate your customers. Most of the time it’s good or at least average news.

All in all this economy is something we all have to deal with. It’s the “Normal” for now. Work within it and adapt. As Gary Keller say “Shift.”

Thanks,
Brian

For those of you who will see this in newsletter form, I invite you to our blog site, www.colospgsblog.com. For those of you who are already within my blog, thanks for being here. I am writing a dual newsletter and blog this week.

It’s official that we are half way through the 2009 year and the year is shaping much like I expected. We are seeing foreclosures driving the market with over 2000 foreclosures filed and closed this year. We are seeing the medium sales price hovering in the high $170’s. That’s 17% lower than last year. Year to date there has been over 2600 single family home sales which is a little less than last year. Interest rates are remaining at near record lows. On July 1st I was quoted from 5 ¼-5 ¾ for owner occupied financing. This is still very low.

So what’s in the Maecker Team crystal ball? I expect foreclosures to remain a factor in the market. We will set a new record this year with over 5000 foreclosures. The good news is that investors and first time buyers will absorb these homes. Inventory will remain flat and prices will stabilize except above $ 400,000. In some pockets from $400-$1,000,000 there is a 3 year supply of homes.

Interest rates should also remain flat with some slight rising at year end. I expect by this time next year we should start seeing positive upward movement in most areas of the market. We will see a trickle up effect. This means 1st time sellers will buy up and the movement will continue up to around $600,000-$700,000. Those folks will probably sell and reenter and scale down.

My guesses are based on almost 25 years of experience and over 3600 homes sold. There are only a few of us in Colorado Springs with this extensive experience. This is and will be a market that requires experience and hard work. Already this year we have sold almost a 100 homes with 85 closings. We are doing great. The reason we are doing so well is referrals and hard work.

Please call and I can explain.