Although buyers complain about falling prices, I wonder if buyers realize that sometimes they cause prices to fall. That's because every guy wants a smokin' deal. Many buyers today want to write lowball offers
. Buyers want to pay less than the last buyer paid for a similar home. They believe this way of thinking is their insurance policy against falling prices. Instead, the buyers who follow them in subsequent transactions will probably want the same thing as well, so you can see the pattern it establishes.
As long as this mentality is the driving force in the marketplace, prices are unlikely to begin an uphill climb. There may be small pockets in the country that show appreciation but overall, prices will continue to remain flat. Some areas might see continuing price declines, just not as dramatically as over the past few years.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.