The lesson of the day is buyers are not stupid, no matter what the latest advertisement from the National Association of Realtors would have you think.

The Tucson, Arizona market was a typical market during the real estate bubble. Logical pricing all of a sudden exploded into a gold rush mentality and pricing increased significantly. Hordes of speculators dropped into the market and builders and sellers raised their prices weekly.

When the rush to buy ended, the house of cards collapsed, but no one wanted to back off their 30 percent yearly gains. So the buyers stayed home, velocity dwindled and the speculators that did not get out in time lost their shirts.

So now something has happened. The sellers realizing that maybe it is better to sell and give up some of their appreciation are lowering the price. And guess what happened.

The buyers came back.

Home buyers are not all fools. They will wait in their 2 bedroom apartments till the deals come back and they are not going to lose the money they set aside for a home. They will overpay a little if they think the market will head up soon, but not into a declining market.

But a fairly priced home that has the chance to appreciate will still move pretty quickly. Just look a Tucson.

Some of the winners in the housing slump are first-time buyers or others who felt priced out of the market during the run-up.
Foreign buyers, especially Canadians, and investors and retirees also are active in the market, looking for bargains, local real estate industry observers said. And some Mexican nationals are becoming more interested in investing in Tucson, Long Realty agent Richie Cardenas said.
“The buyers have come out of the hiding,” said Troy Goodwin, a Coldwell Banker agent.
But for sellers, there’s a catch: “The prices are coming down now,” Goodwin said.via www.azstarnet.com

Related posts:

1. Are Sellers Finally Understanding What It Takes To Sell A Home in 2009
2. Home Prices Increase In a Number of States in 2008
3. Generation X Not Riding To The Rescue For Home Prices
4. Where Are The Home Buyers?
5. First Time Home Buyers Account For Nearly Half of Home Sales