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Home buyers: On or off the fence?

The government is bailing as fast as it can to try to stabilize foundering housing markets. How will home buyers respond?

Financial markets are in turmoil, home prices are still falling, foreclosures are accelerating and job losses are jumping. Some say the best time to buy a house is when there's blood in the streets, and that certainly seems true now.

But tell that to homeowners in fear of losing their nest eggs by buying homes in severely declining markets. Already weak home sales may be in even more jeopardy because of financial market chaos.

It's going to take a while for consumers to process all that has happened lately, according to Jim Gillespie, CEO of Coldwell Banker, one of the nation's largest real estate brokers.

"Consumers have been subjected to a barrage of information," he said, "Once they grasp what has happened, they'll understand that mortgage interest rates are still near historic lows, that they have a lot of homes to choose from, and price corrections have improved affordability."

Whether that will be enough to overcome people's natural reluctance to buy as home prices continue to fall, and their investments and jobs remain threatened by one of the most chaotic financial situations since the Great Depression, is still in question. complete story

Source: CNNMoney.com - Les Christie

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Posted by Orlando Realty Experts on September 27th, 2008 6:02 AMPost a Comment (0)

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