Economic Woes Prompt Buyers to Back Out of Deals

RealtorMag ^ | 8/22/11 | RealtorMag

[illiac]

Recent falls in the stock market and growing concerns over the cloud hanging over the U.S. economy has prompted more home buyers to cancel real estate deals or continue to sit on the sidelines, analysts say.

The National Association of REALTORS® said in a recent report that home buyer cancellations in the last two months increased about 10 percent from a year earlier. Lawrence Yun, NAR’s chief economist, says the increase is due to low appraisals that do not match the mortgage amount, “overly stringent” lending standards, as well as waning buyer confidence.

“The typical home buyer gets rattled when confronted with economic turmoil,” says Stan Humphries, Zillow.com’s chief economist. “The type of fear we’re seeing could substantially worsen the housing market.”

[willk]

It doesn’t help when they keep talking about doing away with the mortgage interest tax deduction!

[MrEdd]

Those of us who understood the correction that was coming and accurately forecast it also contribute here. We know the market is nowhere near bottomed out and I for one am encouraging people to rent and wait it out until the inevitable drops come.

And I ask people, who has more credibility - those who explained this was coming or those who told people not to worry and blew this off?

[longtermmemmory]

the prices are now even more inflated. The home prices are being proped up by the taxpayer in the polical hope (delusion) that prices will bounce up to save the mers banks like b of a.

The only resonable solution is for the banks to take a haircut and simply write off 100k off of all mortgages.