These terms are heard throughout any news media now days. No wonder everyone is afraid to purchase anything. The media has put a scare into consumers, not only in the housing industry but also in the retail industry. Luckily for us here in the Hampton Roads area the housing market does not apply to all the hub-bub reported in the news. We live in an area that is very transient. Thanks to the military, the businesses associated with the military, and the shipping ports. This area has a constant flow of personnel in and out of the area. This not only helps with home purchases, but also with rental properties. The problem is that many people want to live in the past 3 years when the housing market was outrageously overpriced and home buyers were competing for purchase contracts. The market has turned into a ‘normal’ market. Buyers and sellers are negotiating a price, sales concessions are considered in the purchase agreement, and homes are staying on the market longer. Now is a great time to BUY!
If a home buyer is purchasing a home to be a bank, they are in the wrong frame of mind and will be disappointed in the short-term. However if a home is purchased as a long-term investment and is treated that way, then it will most likely be rewarding for the home owner. In all my economy classes through out high school and college I never heard of using real estate for a short term investment. The previous market conditions allowed this anomaly to happen. Unfortunately too many people took advantage of the market and got in over their head.
With the change in lending practices, many homeowners are going to lose their homes. You know who you are. Bite the bullet and try to sell your house now, plan on it being on the market for at least six months. If you choose to sell now, hopefully it will sell before you get behind on your payments. Keep your credit clean so you are able to purchase a more affordable home. As for homebuyers, now is the time to buy. Interest rates are great and sale prices are reasonable.