Credit Suisse Survey: Buyer Traffic Continues to Slow

July CS blog

According to the July Credit Suisse Report, Buyer traffic continued to move lower in July.  Buyers seem to lack some confidence in the economy and there is some price sensitivity as prices have risen.  In some markets, we are starting to see some price reductions indicating that some sellers have outstretched the current market.  However, for properties price correctly, buyers are making a commitment.

Interest rates continue to be a big question mark.  All indications are that interest will rise as we approach the end of 2014.  However, if the Fed feels the economy is still soft, they may make an effort to keep interest rates down.  If interest rates do go up, it will knock some buyers out of the market.  With fewer buyers we may see prices level off or even retreat a bit.

Here are a few quotes from agents in several major markets:

  • Investors have left the market – Los Angeles
  • Over Pricing by Sellers – San Francisco
  • Buyers Recoiling from Prices Running Far Ahead of the Market – San Diego
  • The Frenzy is Over – Houston, TX

Be sure to check out the full report which included 42 major markets and builder rankings.  Lots of great information.

Larry D. Smyth


Farrell Smyth, Inc.

Real Estate

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