Look Into my Real Estate Crystal Ball

Those of you with houses on the market are eager for any good news from the real estate industry. I’ve looked into my crystal ball and have seen the future. Are you sure you want to know what’s in store for you? If you’re brave enough, read on!

All current indicators as of early 2008 predict that the spring season will be a slow one for real estate sales. The banks have continued to tighten their lending standards, making even conventional mortgages much more difficult to obtain. Add this to the fact that home appraisals are dropping as the markets in different areas suffer, and people who once thought that they could put up the 20% necessary for a conventional mortgage are now struggling to pull those funds together.

Prices of homes continue to drop as more and more foreclosed homes fill the market. These homes are priced lower than what the market was barely justifying anyway. Now, people selling homes have to compete against these bottom-dollar properties that are becoming more and more numerous as the housing crisis widens.

Many buyers are holding out on purchasing a home, hoping that home prices haven’t hit rock bottom yet. And they probably haven’t! Many real estate agents are noticing much less traffic coming through their doors as people are choosing to wait until Spring for what they hope are lower prices.

A major concern for anyone in the real estate industry is the huge housing inventory the country currently has. As long as we have this enormous number of homes on the market, prices will continue to drop and fewer people will be able to financially manage a move to a new residence.

Recommendations from the real estate psychic? Ugh, not much. If you’re trying to sell, ask yourself the tough questions. Do I have to sell right now? Can I wait a year or two to sell my property? Can I lower my price considerably to sell? If you’re buying, things aren’t quite so bad, if you can get a mortgage. Definitely line up that financing well before finding your new dream home. The last thing you want to do is go through the trouble of selecting your new home only to not qualify for your mortgage.

Good luck!

Look Into my Real Estate Crystal Ball