Will 08' be better?

By
Real Estate Agent with CENTURY 21 Anne Arnold
The nation's weakening real estate markets are providing the best buyers housing markets in years in much of the U.S. and 2008 promises to be the best time in years for home and condo buyers to find a deal in real estate, according to the latest analysis by Housing Predictor.

By cutting interest rates, the Federal Reserve has triggered what is slowly transforming into an investors surge in real estate sales. Pent up buyers' demand in many markets is becoming evident with increasing inquiries after a housing slump that resulted from an over supply of inventory.

The mortgage meltdown has produced record levels of foreclosures throughout the majority of the nation's housing markets, which won't be sold off entirely for many years. Housing Predictor forecasts foreclosures will top 5.6 million properties through 2011.

Housing prices in the overwhelming majority of the nation's local real estate markets have fallen, some by as much as 50 percent from their market's peak. The majority of markets will still see deflation in 2008. Housing deflation is forecast in 190 of the 251 local markets Housing Predictor forecasts in 2008. But the best time to purchase real estate to make a profit is when prices are down.

Location, location, location has long been the real estate mantra, but buying real estate for the best possible price is key to investing and making a profit in real estate. Only 2 percent of all buyers nationally make their real estate purchases at the bottom of the market.

Investors are beginning to flock to many hard hit markets to make purchases of foreclosures or negotiate lower prices in the conventional re-sale market. The Worst 25 housing markets selected by Housing Predictor is where some of the best deals are in today's market place. But hard pressed markets aren't the only place where buyers are finding deals.

Higher interest rates, combined with poorly underwritten mortgages, new creative finance products and an epidemic of mortgage fraud slowed the majority of the nation's booming real estate markets. But an increasing number of real estate investors are beginning to show that many markets are slowly bouncing back, despite widespread housing deflation and a recessionary national economy.

Comments (2)

Thomas E. Elder
Mortgage Broker Compliance Consultants - Forest Hill, MD
Founder, Mortgage Broker Compliance Consultants

Great info Jabin.  

There was ,however, more to the mortgage meltdown than just bad loans and creative products.   Lest we forget Wall Street's greedy hand in this  or the incredibly overpriced homes brought on by record low interest rates caused by the movement of bond markets around the Feds monetary policies post 9/11.   What a mess, huh? 

 I do believe that we will see the housing market getting restarted a little in 2008 due to the Stimulus plan and the Fed closely monitoring the near recession in the economy.  

 Thanks again and best of luck to you. 

Feb 19, 2008 03:30 PM
Tina M. Atilho
William Raveis Real Estate - Milford, CT
All I know is the real Real Estate Agents will still be around.  It's the others that will go back to their previous professions.  Alot will be inactive starting Spring when license renewal time approaches.   I will hang in there.
Feb 20, 2008 01:08 AM

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