Real Estate Buyers Market - Some Thing to Consider

You must buy real estate was the battle cry two-years ago, unfortunately this was very bad advice at the top of the market. Yet, many people believed prices would never go downward again? For those who have lived decades and followed the real estate market they know full good and well, that these cycles and trends come and go. It is almost a known fact and the decade-long cycles are so commonplace to real estate.

Well today, it is a buyers market, which could mean you can expect more shopping, longer waits to sell your home and many more mandatory inspections with the house offers. Additionally, people will be shopping and getting much better deals and demanding much more as well. They will be expecting to pay a lot less and if you keep your price high, your home simply will not sell at all.

The housing market generally has new homes come onto the market after Labor Day and therefore there is more competition after Labor Day for sellers and more bargains for low-balling buyers. In 2007 this added a 10% increase in houses on the market and that could mean a 10-20% reduction in prices too. Foreclosures too add more supply and we are told that there are another 3 million homes in that scenario coming up soon. Will it be as bad as predicted or will it be a soft landing as the market begins to slowly but surely recover?

What does all this mean for the economy? Well consider if you will the consumer confidence levels, which are so important and the Wealth Affect; how people feel about how wealthy they are. Homebuyer and real estate consumer confidence is real and it is huge. It makes sense that the real estate community be wise and keep their comments on the positive side.

If people find eroded equity even further from their present upside down or  underwater valuations and loan balances, then they will continue to think they are poor and stop spending so much or pulling money out of their home for paying off credit cards or buying luxury type items. This means people spend less money on consumables. But one thing is for certain and that is in a buyers market - Price Rules!

This does not mean that knowledge, competent consultation or great service can be skipped. What it means is that realtors have to work harder, adapt and project confidence if they want to experience the slow climb back to the real estate highs we say in early 2005. Definitely, something to think about in 2008.