NAR: Market-Timers Confuse Projections

Posted by Dave Fratello on Wednesday, January 9th, 2008 at 7:38pm.

What a gem...

The chief economist of the National Association of Realtors is hopeful about a bounceback in existing home sales this Spring, but that could be delayed. In this press release, NAR blames the market-timers:
[C]onsumers continue to wait for additional signs of market stabilization. There are more people with financial capacity now than in 2005, but many are trying to market-time their purchase. As a result, the exact timing and the strength of a home sales recovery is a bit uncertain.
This one is really not too hard to translate or to apply to MB – folks who can buy and want to buy think it's smarter to wait and see. They perceive a downward trend in prices and are less inclined to buy now if prices are going to go down further. (Or begin to drop noticeably and definitively, some might say.)

In this sense, buyer psychology is a critical factor in the market outlook. And a perplexing one, if you're NAR's economist.

Do you get the sense that everyone is watching the next few months to determine the course of the next few years?
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