The current housing market, a bust or a correction...it depends on which part of the country and what side of the table you are in or on! For home owners who purchased homes in "Hot Markets" in the previous 24 months it looks like a bust. For the owner who bought 25 to 96 months ago it should be a correction that is if you have not been using your equity like an ATM Machine. Buyers in some markets will realize some Great Deals in the coming months while Sellers will see the 'Instant Equity Machine" return to its original design...a home to live in and raise your family.
The truth is we actually do need this type of correction in many markets to help or overall economy. At the previous rates of growth a house bought in the year 2000 would be worth $432,000 by the year 2012 had this continued...Now if it were my house that would seem great except for the fact the house I now want to buy would cost $894,000 in 2012. Supply and demand is a good thing and we need to realize that in the interim we should embrace the fact that prices are stabilizing, the sub prime issue is being addressed and yes credit is tightening.
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