Potential home buyers in the U.S. are still waiting for home prices to fall before they make a final purchase decision, a new Credit Suisse survey of real estate experts showed.
In the latest result of the monthly survey of property professionals in 40 markets across the country, Credit Suisse revealed that buyer traffic waned on a month-over-month basis in September. Agents in 37 of the 40 markets reported lower buyer traffic in September when compared to the figures in August.
The survey states that buyers "have shifted from a negotiation mindset toward a willingness to sit on the sidelines and wait for lower prices."
Indeed, buyers have been cautious over the past few months on taking the property plunge after the cold freeze at the start of the year dampened the market. Though the spring and summer season saw the home buying activity pick up steam - it was only the multifamily home sales that took up the larger chunk of the sales pie, which means the rental trend was still continuing.
More recently, the National Association of Realtors released their existing home sales report which showed a 1.5 percent decline in August because of the lack of all-cash purchases in the market.
While NAR experts said that it was a positive sign and the retreat of all-cash buyers would make way for mortgage-dependent buyers and boost the economy, buying hasn't picked up yet.
But the market is set to see some activity as the employment scenario has been improving. In September, the U.S. added 248,000 jobs and unemployment levels dropped to 5.8 percent - a six year low, according to the Labor Department.
Meanwhile, home prices have also been accelerating at a slower pace from before. More recently, economists at Redfin said that home prices will keep softening as more all-cash investors stay away. Also, the current mindset of buyers and sellers reflect a fall in asking prices.
"Buyers want to buy, but they're patient, and more careful not to overpay. At the same time, sellers are adjusting to having less power, which seems to have put a damper on some listing their homes," the report explains.
