OK. So I know that this market is causing many homeowners to suffer. However, I just read a comment by Clark Howard, a "Consumer Advocate" reporter in Atlanta, where he tells buyers to "wait a little longer" to buy a home. I had to look it up for myself after hearing several Real Estate Agents discussing Clark Howard's Real Estate advice lately.  I understand his perspective, but I am concerned about the constant barrage of negative information buyers are receiving these days. I recently read another Active Rain member's blog where they said "without buyers, there is no market." How true is that! The market is only going to get worse if buyers continue to be too afraid to buy.

Being married to a Math Teacher / Real Estate Agent, I am privileged to get a different perspective on the market. Chris tends to see things in numbers. He is constantly running numbers in his head! Recently, he was figuring percentages on how much sellers are actually losing in each price level and realized an undeniable fact. If your family wants or needs to upgrade to a bigger home, this is the perfect market to do so! Yes, it may take longer to sell your current home, and you may lose a percentage of the value you once had. But - the sellers in the next price level are losing that same percentage, and since their house is more expensive, the amount they lose is greater than the amount you lose - which means, you will actually gain. Let me break it down for you: If you sold your home that was valued at $150K last year, and home prices are down %3 in your area this year, then you would have lost $4,500. If you then buy a home that was valued at $250K last year, and prices are also down in that area %3, that seller would have lost $7,500, which means you gain $3,000. Let's look at the opposite scenario: if prices had increased by %3, to upgrade to that same house will cost you an additional $7,500. So you would actually spend $15,000 more to buy that same house in a "good market" than in today's market. (It would be valued at $257,500, instead of $242,500 as it is now.) So you actually get a better deal in today's market! Then, when the market turns, as is inevitably will, you will gain almost instant equity becuase the value will rise above the price you just paid. Of course, this scenario is theoretical, but the numbers don't lie. Any percentage reduction of a larger home means a bigger loss than that same percentage reduction of a smaller home.

Now, I know this is not going to benefit everyone. But it will benefit those who fit into this category. And if some buyers step out and start buying again, more will follow and the market will turn. We just wanted to shed some positive light on an otherwise seemingly dark situation. No market is ever going to be ideal for everybody. But if you learn how to make the most out of every market, success will follow in any market.

Best of luck to all!

Dianne Dunn