Home buyers reluctant about taking the plunge

Home buyers have the upper hand in the real estate market for the first time since the record run-up in prices began two years ago, but industry-watchers say most are reluctant to jump in and instead are waiting to see when values will bottom out.

Put simply, buyers are scared, said Jan Montgomery, a realtor who owns Canyon Shadows Realty in Mesa.

“There’s a lot of negative information coming at them about the bubble bursting and the market falling,” she said. “Everything is all negative and they’re taking that on themselves, thinking ‘Maybe I shouldn’t do anything. I should just wait until it settles.’ An experienced buyer is probably not viewing this the same way, but our first-time home-buyers or new buyers to the area are not quite sure what they should be doing.”

The days of sellers settling bidding wars for their homes are gone. So are the sales contracts that were done in minutes or days. The number of realty signs that continue to linger in neighborhoods shows the market is in transition.

In the past few months, home builders are finally beginning to respond by lowering prices to get rid of inventory. Some sellers are finally starting to realize their asking prices are too high and are cutting them. Listings are up considerably and prices have reached a tipping point in sensitive areas, mostly on the outskirts.

The new market requires buyers and sellers to do their homework, industry-watchers say.