Very Confusing Market for Buyers
We are presently looking at condo's and co-ops in our area. Small, one bedrooms approx. 750-800 sq ft. This has led us to look at smaller homes in the 1400-1800sq ft range because prices of condos are similar to house prices.
We sold our home a year ago and although we sold for less than we wanted, it was close enough that we are thankful it is over. The market appears more mixed up this year than it did last year.
My thoughts and observations are that there are a lot of properties on the market and sellers have no idea how to price their homes. I don't think Realtors do either.
It appears people are listing lower than they would have a few years ago, but somehow the prices are still too high for the market. I'm not sure why houses are not selling, but it makes us nervous.
I am afraid to buy in this market. There are so many listings. Our area doesn't seem to have many foreclosures, so I don't think that is affecting sales or pricing. Sales are few and the amount of homes entering the market keeps increasing.
What I also see is most people do not budge from their price. They are sitting for months on the same price and not reducing at all. Then, there are the few houses which drop their prices low and they are still sitting.
High end houses seem to be moving faster but not by alot. This area of NY has top schools and is a close commute to NYC. Taxes are high but never prevented homes from selling.
My concern is about the low amount of sales. I thought people might be opting to rent or buy condos or coops but they are also sitting.
I can't figure out how to price a house. I think many are still overpriced. Many seem to be priced correctly yet are not selling. Desparate sellers will suddenly drop their prices so far below the norm that it makes it difficult to decide if those prices should be the norm.
Bottom line, I have no idea what to offer. Do you offer based on the majority of house prices or let the low priced homes be the gauge? Comps are all over the place. What do you base your offer on? The sales are too widely spaced to make any sense. There are too few sales and too many houses just sitting.
I hope someone understands what I'm trying to express. We are afraid to buy.