News: Many prospective homebuyers waiting on further price declines

September 5, 2008

A recent online survey revealed that nearly one-fourth of potential homebuyers are remaining on the sidelines, expecting housing prices to further deteriorate.

It's not an easy decision: Buy your dream home in a down housing market or stay put and wait for prices to drop further. A recent online survey revealed that nearly one-fourth of potential buyers are remaining on the sidelines. However, as with stocks and other investments, "timing the [housing] market can be very tricky," says Richard F. Gaylord, president of the National Association of Realtors. For instance, NAR reports that sales prices are falling in Atlanta, Houston, and Kansas City, Missouri, despite affordable homes and strong local economies in those areas. In the Northeast, prices, as well as sales of existing homes, have dropped by double digits from a year ago. Best advice: Closely monitor the market you're interested in, and buy when you-and your budget-tell you the time is right.