Every market is dependent on buyers. Without them, there is no market. So what should buyers be concerned about today when deciding whether to buy now or wait?
In today's market these are the three new groups of buyers that are about to re-enter markets. The smarter ones have done so already as the pent up demand combined with low inventories and building - and very scarce financing to build - may afford them pricing that is almost certain to rise again once all these people emerge in full force:
1. Wage-Recovery-Buyers: Their wages did not keep up with rising home prices, but after many months of savings, maybe combined with a new, higher paying job, a pay rise, or two incomes, maybe a gift from a parent, maybe an improved credit score too, they are ready to re-enter the market.
2. Wait-And-See-Buyers: Many who could afford to buy, put their purchase on hold. They calculated that rising interest rates would bring home prices down. Now that rate hikes seem a lot less likely than rate declines, they are ready to re-enter markets. Many 'waiters' rented - at very high prices - which after a few years adds up and reminds anyone that buying is mostly wiser.
3. Fifth-Stage-Of-Grief-Buyers: These are the sellers who put their plans on hold because they could not sell for their maximum price. Many wanted to hold on to ultra-cheap mortgages. They have arrived at the fifth stage of grief: acceptance. The time has arrived to accept a lower price when selling to move and purchase for their next chapter. And do so at a higher interest rate, that is off its peaks late in 2023 and may come down further.
All the other buyers in 'regular markets: death, divorce, diamonds, diapers, diplomas, donations, lotteries, lost fortunes, new fortunes, etc have kept our markets moving and combined with the above, 2024 should see an uptick in inventory and sales as many buyers are by definition, also sellers
