The housing market still isn't clearing. In my neighborhood, almost nothing is coming on the market even though we're well into spring, and half of what does appear is either utterly decrepit, or wildly overpriced, or both. People are not selling unless they absolutely have to. Nor are people buying. I think the value of our house has dropped, but I can't be sure because nothing's moving on the market.
I was worried that we would sell our house quickly and then not have any place to move. There are very few houses on the market right now. The only homes on the market are the duds that have been around for six months or more. The duds are sitting, because there is something extremely wrong with the house -- oil tank leakage, busy street, proximity to an expanding hospital.
I check Realtor.Com ten times a day looking for new inventory, and there's nothing. People aren't putting their homes on the market because they're waiting for home values to bounce up. They are putting off that retirement to Florida for one more year.
Well, the panic has abated, because nobody wants to buy our house. We're six houses away from the commuter train line. We never hear the train, because we are former New Yorkers who can sleep through a five alarm fire, but prospective buyers aren't convinced.
I also think that prospective buyers aren't buying anything right now. They are sitting and waiting for prices to drop further. This is a high stake game of chicken.The problem is, it's not a game of chicken. The buyers don't have to buy. In more and more cases, however, the sellers have to sell: they can't afford the house, or they need to move. As those people are forced onto the market, prices fall further.