Who needs to Budge – Buyers or Sellers?
The Chicago real estate market hasn’t experienced the huge price drops that many parts of the country are enduring – places like Miami, Las Vegas and Phoenix where the building boom of a few years ago is now resulting in pricing busts. But in Chicago, median home prices have actually remained very stable, falling only 2.4% from July of last year. Even with steady prices, home sales volume has not increased in the city because there is a standoff between buyers and sellers about what fair market price should be in Chicago.
Buyers feel that since prices around the nation are decreasing, the same should happen here – and sellers aren’t willing to lower their acceptance price because the local housing market is less volatile here than in other areas. With both parties refusing to give in, Chicago’s inventory of homes is not being depleted. No one wants to back down, no one wants to go home empty handed either. Buyers know it’s a buyer’s market right now and they want more house for their dollar, while sellers are hanging onto the idea of recouping the money they put into their properties.
So who needs to budge? Buyers need to realize the trends in Chicago do not reflect the price dips in Florida and that homes here are not going to fall to devastatingly low levels… And sellers need to realize buyers will wait in the wings until they find a place that satisfies their idea of a good deal – right now that means a price reduction from the original asking price. Of course, every situation is different and every sale needs to be worked out between the individual buyer and seller. And there’s no definite answer to the quandary of who should stand down… but just posing the question can influence both buyers and sellers to approach their real estate endeavor with a new perspective. A perspective that triggers a wider understanding of the local housing market and a better resolve to compromise.
Posted at 09:12AM Aug 28, 2008 by Spencer Mason in General Comments[1]
Buyers can't just get a loan for a property they can't afford....like they used to be able to do.
GREAT SITE BY THE WAY!
Posted by Brad Miller on August 29, 2008 at 09:35 AM CDT #