Generally, this is the best time to buy real estate. That’s why they call it a “Buyers’ Market”! Real estate has gone down substantially over the last two years. In fact, a major correction (more substantial than many in the past) has already taken place throughout most of the country. Those markets that were hottest in 2005-2006 have dropped the most. A few markets such as in North Carolina, Texas, Washington state, and many local markets have actually gone up. The rest of the country has faced a correction in varying degrees, and will probably not experience that much of a further downturn in prices. There are plenty of deals out there.
One thing about a Buyers’ Market – buyers are fewer. Most aren’t sure whether prices will fall further or not. And, there are economic trends to consider. Can anyone tell what the immediate future of the economy is right now? While the real estate market is beginning to chug along again, my guess is that a lot of buyers are still standing on the sidelines, waiting to see how this economic crisis turns out. Those who are already financially sound, regardless of further downturns in the economy, are now snatching up all the bargains. A lot of “cash deals” are coming in, and the banks and mortgage companies are being bypassed altogether.
At the same time, the mortgage companies and banks have become much stricter in their guidelines, slower in the process, and, perhaps through cutbacks and layoffs, much less competent in their dealings. This may be a buyer’s market for “cash buyers only” during the first phase. Mortgage companies and banks are still reeling from their past bungling, and are now stumbling through the aftermath. In many cases, it’s almost like they forgot how to process a mortgage! If you’re planning on getting a mortgage for any property, make sure you have a competent real estate agent representing you as a buyer. And take their advice when they recommend a good lender.
