New Home Buyers
New home buyers are in a great position at this moment to take advantage of the housing market’s weaknesses and benefit tremendously from the positives. You can look all around and see the deals that are available, and they are everywhere. The market is flooded with foreclosed homes because of the over abundance of homes in foreclosure, and the high levels of housing inventory. Just try to drive through the neighborhoods of the worst hit areas in your town, and you will see a lot of sale and foreclosure signs everywhere.
At this point anyone looking to by can walk away with a steal if they know how to bargain. It is almost as if we could not give away the high supply of housing on the market. Some areas have up to 40 month supply of housing inventory on the books, and are loosing money everyday from these homes sitting empty. Detroit continues to be one of the worst his areas in the country; with dwindling big employers in the area, high foreclosure and unemployment rate, it is no wonder they continue to struggle. It seem like they might be one of the last places to come out of this mortgage mess we are in. Detroit properties are being picked over by investors and some are completely discarding in that part of the country. Some areas in the Midwest, like Omaha are showing mild signs of recovery. Regardless, it is still not over.
The mortgage interest rates are at an all time low and will continue to remain that way in the near future. If a prospective buyer can get a unbelievable new low fixed rate mortgage loan on a new or used home with all of the perks of buying a home in a depressed market; he/she would have made an awesome deal. The ability to negotiate will give any prospective borrower even more leverage before they come to the table to sign. This almost perfect condition for a home shoppers will not last forever; but if one can take advantage of other’s misfortunes and get into a home at this moment, they can reap the benefits for many years to come. There is a major shortage of home buyer, while there is an over abundance of houses just sitting on the market. The banks are aware of this fact, and are doing whatever is needed to facilitate the need to get buyers into these properties. With lower interest rates and competitive home prices, this will entice buyers to buy. No every can afford to take advantage of these rare conditions, but the ones who can should cease the opportunity because of the possibilities of getting such a great deal.
Housing prices still have more time to drop. This drop will continue until there is an equilibrium of home buyers and the homes available for sale. The market has to correct itself because of the rapid housing market growth a few years ago, so prices had to come back down for the common person to obtain a house. We are likely to see things get worst before they improve. If you do not have to sell your home right now, it might be a good idea to hold on to it for a while until there is a rebound in home prices. While buyers have an advantage, seller are at a disadvantage at the moment. We all have to make it through this crisis together, so try to hang in there and do the best you can to make it through, see you on the other side.
