From the Boston Globe:
A decline in house sales last fall has left a January glut of unsold properties in suburban Boston as the big spring selling season approaches, according to data released yesterday.
Some real estate agents expect this large supply of housing to be compounded by new sellers entering the market for the first time in February and March, which typically begins the busiest season for sales.
Real estate agents are split over what the sizable jump in inventory will do to buyers and sellers — and the impact it will have on sales and prices. Campos is banking on a lowering of price expectations among buyers and sellers, who have witnessed years of rapidly rising prices amid a feeling housing supply was limited. But now prices have softened, he said, and if sellers drop asking prices to more realistic levels, buyers are poised to move in.
”Last year was a real awakening,” he said. Now, ”buyers and sellers know the market’s changed. Last year, nobody knew.”
But Bill Wendel, a broker who represents only buyers as owner of Real Estate Cafe in Cambridge, does not see buyers coming out of the woodwork to snap up bargains and shrink bloated inventories. Many first-time buyers or renters have indicated they will continue to watch the market, hoping prices fall further, he said.
Seems that buyer psychology is shifting rather quickly these days. These buyers on the sidelines that are hoping for price declines will not jump in to catch the falling knives.