There is no questions - we are in a "down" real estate market. The question is: Who does this hurt, and who does it benefit? This month, we will discuss the winners and losers in the current real estate market. Losers - If you purchased a home in the last two years and need to sell in this market, you have been hit hard by lower prices. Unless you had a down payment of at least 15-20%, you will likely need to bring in additional cash or will need financial assistance in order to close escrow. You also could be hit hard if you purchased your home with a low down payment and an adjustable-rate mortgage that is now adjusting to a significantly higher monthly payment. In appreciating markets, you could refinance into low-interest, fixed-rate loan. With the current market conditions, that option does exist. Winners - Buyers who could not afford the higher prices of two years ago may now be able to afford to enter the marketplace. This market also presents an opportunity for investors who look for two ingredients - low prices and low interest rates. Since both are present today, we look to see 2008 as an investor-rich market. There is a third category into which the majority of people fit. Most people fall into the unaffected category. They own a home that they do not plan on selling in the near future. Although the market has trailed down, history suggests it will be on the rise in the future, and they will be virtually unaffected by this "down" real estate market. In conclusion, real estate can be a volatile short-term investment, but it is a stable investment over the long term.

by Fidelity National Title Company