As we have recently seen the national housing market has been slowing down after a long period of extreme activity. During this period we saw home values climb higher than ever before and there were so many buyers in the market that often there was stiff competition for what homes were available. This caused builders to go into overdrive, developing homes at a rate never before seen and again this increased home values as there were even enough buyers to keep up with the builders. Unfortunately many of those buyers were receiving sub-prime loans that ended up in foreclosure when the mortgages could not be paid on time. This was a partial cause of the general cooling off of the market, it is also partly the result of the normal fluctuation of the market that is dependent on many monetary factors.
The end result of all of this action is that home prices have dropped in many areas around the country and this has created an opportunity like there has not been since before the housing boom got underway.
The boom created a real sellers market. The demand for homes was so great that sellers often found their properties in the middle of bidding wars with eager buyers trying to top each other to get their hands on homes. This continually drove home prices up and whipped sellers into a fever. The results of this are easy to see, the national obsession with home flipping is a perfect example. You can't turn on the TV without seeing a show on home renovation, flipping, reno disasters or investing. Today, we have moved into a buyer's market. With not as many buyers interested in homes, sellers are now having to compete for their business. This is unfamiliar and scary territory for investors who broke into the market while it was soaring at the other end of the spectrum.
But what does this mean for the average home buyer? Well, for one it mean that sellers are now competing for your business and attention. You can expect more comprehensive incentives when buying and a more acceptable price than you may have expected in previous years. Essentially this is a great time to be a home buyer and one should be able to find some terrific deals in the local real estate market. Get out there and with financing in hand, find that dream home that you have always been looking for.
