There are many experts on the home market who predict that the housing market is in for a rough go of it. Housing values are decreasing and home prices are falling everywhere. In some parts of the country, home prices have declined as much as 25% over the last year or so. Although experts like Josh Team do not foresee a housing bubble, they do believe that it is a buyer’s market at this moment. In some areas, homes are selling faster than ever before.
So, what does this mean for buyers? If you’re a home buyer looking to purchase a home, you might want to take advantage of the current low mortgage rates. This might just be your opportunity to get into a desirable house at a great price. A low mortgage rate might be exactly what you will need to move up to a more desirable house at a less expensive price. But if you have other alternatives available, you might want to wait until the prices start to rise again. While rates will definitely rise again, there is no guarantee when they will begin to rise.
When the housing market began to fall, many people were concerned that costs would never recover. However, the slow and steady decline of the housing market has meant that many more properties can now be obtained at a lower cost. Those who have been priced out of their houses are now able to purchase another property at a better price and oftentimes, even a home that is cheaper.
Even as the housing market continues to rebound, there are a few signs it is not as strong as some experts had hoped. The slow down in property sales has hurt certain areas of the country more than others. Many areas have experienced double digit declines in housing sales. Although this is bad news for buyers, the local market will see more openings in these businesses as the economy improves.
Additionally, while foreclosures are affecting the housing market, they’re not anywhere near as bad as they were a few years ago. Many home owners who are facing foreclosure have received offers for their property which are far below the property’s fair market value. This has made homeowners in these scenarios feel far more confident about making a purchase. However, sellers must also bear in mind that selling a house under these conditions will require much more time than it would have lately. This is especially true when a buyer is looking for a high cost.
It is likely that the housing market will bounce back as the economy improves. In the meantime, buyers have more options and housing costs are much more affordable. Those interested should act before the prices start to drop again. Act now before market values fall further.