Buyers are still cautious with the current economic enviroment. The problem is 6 months from now can be a completely different market. Its quite amazing, no matter how many times you tell people to buy low, sell high, buy when people are fearful and sell when people are greedy, no one seems to care, I think a large part due to laziness.
Opportunity is here, if you have been dreaming of owning property, if you can afford and are in the market to buy, BUY! The median sales price dropped 10% from the beginning of the year to $535K in Hoboken. Jersey City new median price for May is $257K. What this is suggesting is that a "depression" is virtually not going to happen, it stills makes me wonder why people are still getting cold feet and/or not pulling the trigger when they have all the financials.
I came up with a few reasons why maybe buyers are not pulling the trigger:
1) Laziness, plain and simple, look if you do not want to the research on the financials to make yourself feel secure then its your fault why your not pulling the trigger
2) If you are working with a good realtor, then TRUST them! If a realtor is bending over backwards for you and hes smart about the market knows what hes doing then ask him questions until you feel comfortable.
3) They talk to there friends or people at work! this is the WORST! plain and simple.
Overall reasons for this happening can span on or for a number of different issues. But the reasons stated above seem to be the most apparent.