Curious and Cautious

My son works at a grocery store and he confirmed the current shop and drop phenomenon. You're probably a participant as a shopper or you've seen it as a seller of product or services. On-line and in-stores, people are shopping but then dropping items from their cart at the check-out counter.

Maybe it's the 21st century version of window shopping and we see it every Sunday with people coming through open houses...In the words of Jack Johnson: sitting, waiting, wishing.  Look but don't leap. Touch but don't take.

There is plenty of curiosity amidst the caution. This is going to be a test of patience on behalf of would-be real estate buyers and sellers. Buyers are well informed by now. The loan underwriting rules have been in place long enough now and the inventory of sold properties for appraisals is big enough that we know within reason the value points around Dane County.

Because patience eventually runs out and the desire to buy will overcome the contentment of shopping, I suspect we soon will see people choosing to write offers. When that happens, owners of homes in good condition will receiving multiple offers. But they won't be impressed by the prices offered. The last great hope will be with the sellers who expect the flood of buyers to drive prices up. I believe the consumer who has been curious and cautious will come into the market wearing conservative clothes. They are stopping short of checking out after they look, but soon they will hold on to what they are now putting down. Their motto may be: "We won't be burned again". But they will be making decisions. It will be up to the owners to decide to let them check out.

When the buyer's come back to the price points they ignored for the last  year we will see the housing market begin to trudge for real.