I found this article to be very interesting and wanted to share it with all of you. Remember there are buyers out there; they are looking for the best deal.
by Mike Wiegert
Quote-
“On a national level, existing home sales increased in May as buyers are reacting to lower home prices according to the National Association of Realtors (NAR). May figures indicate 4.99 million existing home units sold, up two percent from April’s sales of 4.89 million sold units. This number is still a far cry from May 2007 sales at 5.93 million units. The reason for the latest increase in national home sales was summed up by NAR President Richard F. Gaylor, “Home buyers are starting to get off the fence and into the market, drawn by drops in home prices in many areas and armed with greater access to affordable mortgages,” he said. “Today’s buyer plans to stay in a home for 10 years, which is a good strategy for building long-term wealth.”
NAR Chief economist, Lawrence Yun, indicated last week that there is a significant inventory of homes. “The large supply of homes on the market clearly favors buyers, and it should take several months to draw the inventory down,” he said. “Stabilization in home prices can only occur with buyers returning to the market, so we are encouraged by rising home sales, particularly in distressed markets. Foreclosures and short sales appear to be a larger part of the market, particularly in California, and are creating a drag on current home prices.””