THE CURRENT BUYER'S MARKET

Simply put, a buyer’s market favors the buyer because supply of available purchases exceeds current demand. The BUYER has all the power – the power to choose from a wide variety of opportunities, the power to proffer a low price and win the bid, the power to get a great deal.

For sellers, this type of market condition is clearly adverse. No matter how many times one reduces the price on a property, because so many other sellers are competing for the same group of buyers who have the liberty to be choosy due to oversupply, the seller may still find his property languishing on the market for a year or more.

The current market in the greater New York area absolutely favors the buyer. Market prices have steadily been re-calibrating for the past two years and, since sellers have been slow to accept the new price structure, properties have remained on the market too long, causing the number of available properties to multiply.

Buyers on the other hand, have been quicker to recognize the power of choice now in their hands. (You may recall we came off a number of years in which properties were receiving multiple bids over asking prices as soon as a listing hit the market.)

The paradox we see in this powerful buyer’s market, is that too many people remain reluctant to take the plunge and buy. They are afraid – why? Afraid that the market will go still lower and they will miss the bottom. Afraid that the future of the market is uncertain – that they won’t make a good profit when they are ready to sell.

One thing is certain in real estate – cycles change, and they can change on a dime. Wait too long and you suddenly find prices rising quickly and you’ve missed the best deals. Timing can be good but it’s never 100% perfect. Real estate ownership, over the long term, has traditionally been the greatest wealth growth opportunity. Plus, you have the privilege of living in your excellent investment and not wasting hundreds of thousands of dollars enriching a landlord.