USA Today reported that the nation may suffer yet another decline in home prices this year by upwards of 14%. A drop in home prices is caused by an influx of homes “for sale”. When supply far outreaches demand and there are not enough buyers in the marketplace, sellers are forced to decrease prices… it’s simple economics.
In theory, lowering home prices pulls buyers into the marketplace. Someone who might not be able to afford a home at $200,000 could very well afford the same home at $150,000. In theory, an influx of new buyers into the marketplace should increase demand, and counteract falling home-prices.
But is it appropriate to apply such a simple economic theory to the real estate marketplace? I think not.
Homes are unique. What different buyers might pay for the same home may vary drastically. We’re not selling apple’s here people. Nobody will pay $100 for an apple simply because it looks better than the 25 cent apple.
This is why BuyerHunt is such a valuable tool. In a marketplace defined by varying tastes, (and not necessarily a strict adherence to a pricing structure) a true picture of the real estate re-sale market may only be seen if a large sampling of prospective buyers can be analyzed.
Ask yourself this…. which is more valuable information? A compilation and analysis of homes on the market and what their “shell-shocked” owners are willing to sell for, or a descriptive analysis of every potential homebuyer in the market today which details their specific homebuying wants and needs and price points? I think the answer is clear. Buyers and purchasers drive this economy. Let your voices be heard.
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