There's no denying that there's a shift going on out there in the market.
So what does this mean?
It means no matter what we always fall back to the basic economics of supply and demand.
Yes, some buyers have had their dreams dashed for a period as they failed to qualify with stricter terms on mortgage.
But, others are noticing that the market has lost some of its competitiveness. Has it though?
Some things to be cognizant of:
1. When there's little supply in a demanded pocket---even in a so called "buyers market", you can still find multiple bids. See http://www.TheSmithsBuyAHouse.com. Look under mutliple bids and strategies.
I've run into a few circumstances of late where the price of homes were still bid up and competition exists. Not April competition, but competition.
2.June to June prices have increased. A buyers market does not neccesitate falling prices. It would be nice
3. New building permits are down, so if there are enough buyers in market then stock of resale (supply) will dictate the competition and interest.
4. Rates are still very low. The big banks all dropped rates last week on closed mortgages.
5.With the recent job #s, it looks pretty certain that the BofC will raise rates. More workers should translate into more demand for assets. If supply is plentiful, the buyer market continues.
6. Know the neighborhoods you're searching in and look at those stats to better understand what a "shift" means for you.
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