This continues our series on how we see the budget cuts at the state and local levels affecting our real estate market. In our last post, we covered the distressed home owner. We expect more distressed home owners and more foreclosures in the coming months due to job losses and lower incomes.
Over the last few weeks we’ve talked to sellers who need to sell because they will no longer be able to afford their home with the pending budget cuts. We’ve also talked to buyers who have suspended their purchase plans because their take home pay will be reduced.
We have a new market dynamic that is increasing the pool of sellers and decreasing the pool of buyers. The laws of supply and demand are at work, and we are clearly in a buyer’s market.
In our next post we’ll cover how this new market dynamic will impact the real estate brokerage.