What kind of Market is this???

 

During this hard time for the real estate market and economy in general, it is hard to tell if we are in a buyers market or a sellers market.

Over the past few months we have seen some really low prices on homes that are currently on the market.  This gives a little bit of relief to the prospective homebuyer who had always thought they couldn’t afford a home at the moment.  With the flood of short sales, and foreclosure out their, due to this some real estate professionals have said it’s a buyers market.  But some buyers beg to differ.

In a buyers market, there is a large supply of homes for fairly affordable prices.  However, you also have to consider that when purchasing a home, unless you have all cash to pay for it, which is rare these days, you are going to have to obtain a loan from the bank.  Loans these days are so hard to come buy.  Some banks have little or no money to give to the consumer, in turn denying the borrower a loan for the home they choose. If the bank does in fact have money to give, you will have to have an outstanding credit score, at least 20% down on the home, a steady income, and anything else that the lender requires for the loan.  Keep in mind though, that there are different first time homebuyer programs that are being offered now.  So unless you are completely qualified, you may not think this is a buyers market.  Buyers markets generally occur when prices of listed homes are fairly lower than what they were in previous months or even years.

Today, it is very hard to tell on a given day if this is in fact a buyers or seller market.  In my opinion, this is no sellers market.  Most homeowners are being forced to sell their homes, probably because they lost their job and can no longer pay the mortgage, in turn forcing them to sell the home for no profit only so they can save their credit for the future.  This gives the qualified buyer the chance to come in and purchase the property for an amount that is drastically less than what the initial homeowner paid for it.  We have a huge supply of these homes out on the market right now, giving the buyer a chance at a great purchase, possibly investment for the future.

If you are a buyer considering purchasing a home in this market, always do your homework.  Speak with your Real Estate agent to find the best deal for you.  If you have the money and other qualifications, now is the time to take advantage of the inventory that is available to you.  Just remember, the market will turn around and cant get much worse than it is at the current time, buying a lower priced home can actually benefit you in the future when the market turns around for the better, in turn creating a higher equity in your home than you paid for it.  At that point it is up to you if you want to sell.  Consult your Real Estate Professional today!