I’ll Decide when its a Buyer’s Market

The real estate industry seems to have a number of buzzwords and clichés for the state of the current market. Although few Realtors will admit that prices have stagnated, many are quick to point out that the market has switched from a seller’s market to a buyer’s market. In the context of the 5 year boom in housing prices, the contention that all of a sudden, the market now favors buyers is idiotic. At best, prices in most areas of the country have been flat to slightly down for only about six months, maybe nine months at the most. This is a good start for buyers, however, until prices start to noticeably trend down, I would not call this a buyers market. In my opinion, a more favorable buyer’s market will be noticeable when the price comparisons are down at least 10% year-over-year, which I don’t expect to happen until the third quarter of 2006 at the earliest. However, even if the price declines are noticeable, it should be up to the buyer to decide if it’s a buyers market and not the opinion of an addled Realtor desperate for a sale.