For those of you who regularly read articles on my blog, it is likely apparent that I thoroughly enjoy data, number crunching, analysis, etc. But sometimes my counseling background (Masters of Education in Counseling Psychology, CSPA) slips in, and I give the data some rest to look beyond the numbers.

These three perspectives on our current market were developed through conversations with several clients over the past few weeks, and I believe they offer valuable insight into our current market in addition to what the numbers would suggest.

Place and Space

Most people realize that in our current market, there are some great opportunities to get a good deal on a home purchase. The supply of homes for sale is higher than it has been for several years, and the amount of buyers in the market is lower than it has been for several years. Given this dynamic, some sellers, Realtors, market observers are curious as to why more buyers aren't finding a great deal and moving forward.

I had a conversation recently with someone who isn't even in the market to buy right now --- but who shared a valuable perspective with me. They suggested that for most people, buying a home isn't really about "getting a great deal" or "taking advantage of the current market dynamics" --- it's about buying a place that feels like a home and space that serves one's needs.

That is a keen observation --- because there are plenty of deals to be had, and buyers can definitely take advantage of current market dynamics. But perhaps buyers aren't snapping up homes because they are waiting to find the perfect place and space to call home.


The Psychology of Fear

Just listen to the news, or your neighbor, and you'll soon know that the economy is terrible right now. High gas prices --- a declining national housing market --- higher food costs --- soaring health insurance costs, and on and on. All of these economic conditions can make people (home buyers, especially) fearful for their financial future.

And thus, even though home values in Harrisonburg and Rockingham County haven't seen declines like some areas of the country, many buyers are hesitating to purchase --- and some of them are doing so out of fear for what the economy may look like over the next few months and years.


The Power of Hope

Beyond the effects of feeling fearful about the future, I would also suggest that home buyers need to feel positive and hopeful in order to be excited about buying a home. Sometimes this can be a self-contained hope --- hope for how a home will make life better for their family. But sometimes those outside influences (such as our current economic situation) can sneak in and steal the hope away.


To truly understand our current market, it is essential to not only consider the data but also current market psychology --- as either can have the upper hand in shaping our real estate market now and into the future.

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Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com