The Real Deal Miami

Buyer confidence begets market strength

December 10, 2009 10:47AM

The recent nationwide uptick in mortgage application volume, as evidenced in yesterday’s Mortgage Bankers Association data, underscores moderate price stabilization in the housing market, MSNBC’s Diana Olick said. While real estate Web aggregator Trulia’s data showed that 22 percent of all home listings currently on the market have seen price reductions, that figure is actually down from the 29 percent of home listings that saw price cuts in the spring. This leveling off comes as more buyers regain their confidence and return to the market. “It’s all about demand and now that we’re beginning to see that buyer demand return to the market, home sellers are now less inclined to lower their prices,” Olick said.