Why is it that nobody wants to buy homes right now?

why is the market for buy a home low?Why is it that nobody wants to buy homes right now?
Because recently houses have been LOSING value, so if you pay $100,000 for your home today, it may not be worth $100,000 in a year.





Also, because people are having trouble getting loans. Now that folks know that many bad loans were done, banks are getting much much more careful about who they'll loan money to. People who could get a loan 5 years ago can't get one now.





Finally, the economy is unstable. People don't want to commit to a mortgage if they are unsure about their job, or what prices for other things - like fuel and food - will do in the near future.Why is it that nobody wants to buy homes right now?
Because prices are still going down. So, a home you buy today will be worth less than you paid for it next month. And, if you had to sell it or tried to refinance it, you wouldn't be able to get enough money to pay off the loan you took out to buy it in the first place.





When home prices are rising, it's just the opposite. The home is worth more next month than when you bought it. So, if you have to sell it, you can make a profit or at least break even. And, you have equity in the home that you can borrow on.





The only people buying homes right now are people who are buying investment properties (snapping up foreclosures at a low price) or people who plan to be in the home for more than 5 years, when prices will rise back up to and beyond the purchase price.