So what’s going on here in Catskills of Sullivan County, NY? The short answer is—not much. Across the board, recent sales indicate buyers still favor the sidelines, not the playing field.
I believe there is still a relevant disconnect on the selling side of the equation. Sellers seem unwilling to make peace with the current bottom fishing aspect of today’s market. With that being said----
The home buying atmosphere should be robust and flush with exuberant activity. Lower than low interest rates, good inventory, and the first time homebuyer’s credit which may be used as a down payment are among factors that support and should buoy the market. Yet these favorable circumstances are not bringing buyers to the closing table.
Warren Blumenthal, Owner/Broker of Catskill Sales Associates, Inc located in Jeffersonville, NY, attributes the lethargic conditions to two primary elements.
The buying community believes the market still has not bottomed. Potential buyers are concerned their jobs may disappear.
What bothers me is the fact that savvy buyers, in general, know they cannot call the exact bottom of any market. The macro economic prevailing winds certainly indicate a buy now signal. Why aren’t they at the table in droves?
Perhaps it is the second point Broker Blumenthal makes that is more telling. All the conditions may be favorable to buy now, but if the buyer fears losing his or her job, buying doesn’t make sense.
My crystal ball in the attic predicts the buyer’s market will remain. I suspect that if the economic doldrums persist, sellers will have to get more realistic pricing points on their listings or they’ll be paying taxes for another year.
Even if we are close or at a pricing bottom, buyers will simply kick the tires if they fear for their jobs. Stay tuned for the next post when I bring the ball out of my Victorian attic.
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