The real estate market just needs a nudge to get things rolling again. The market feels stagnant, not a crisis but just mulling about like grounded child pacing his room. Interest rates don't need to fall much, just a half point to actual rate and things would perk up nicely. But if rates must remain where they are, which may be the case since the recent Fed decision to hold suggests they will. Other market nudges could be an improved job market, local downward pricing pressure, or perhaps some of those folks hanging on to a 3% rate retire and downsize.
The market does not need a major stimulus. The federal government could also improve the mortgage deduction to make it a bit easier. Getting homeownership back up and on track will also result in lower rents as rental pressure will shrink.
In the mean time both buyers and sellers are experiencing near neutral conditions. Well priced homes will sell in about 30-45 days, Below market prices will bring multiple offers, and overpriced listings will sit for months and months. Listing agents need to actually do some marketing in these conditions. Some do some don't so prospective sellers will need to ask direct questions of their potential listing agent.
Buyers should keep in mind that rates are not likely to see much relief other than standard fluctuations as the federal government continues its drunken spending binge that keeps pressure on the Fed to keep things on the proverbial leash.
Let's hope we see that nudge soon.
