Before the housing bust, many buyers were driven by the fear of being out-priced by increasing property prices. For 80 years, with a few minor downturns in between, real estate prices have constantly risen.
“Buy now or be priced out forever” has been a real problem in California real estate for the better part of 40 years. It has been a rational fear because waiting often meant buying less or not buying at all. A strong economy and job growth often outpaces construction, pushing real estate prices higher and higher.
The housing bust changed all that. People now understand the house prices could go down, substituting down in quality just to own is not a wise decision, and priced out can quickly turn to priced in. The urgency is gone, people buy when it is right for their family. Sellers have to be aware and make sure they are pricing accordingly to generate interest from wary buyers.