There really is great news for all prospective home buyers out there, but not so good news if you are selling, I’m afraid.

Now that the government stimulus package is finished, the Real Estate Market looks as though it is back into being in a mild slump.

This sounds like more bad news, and it is for some sellers. The good news is for all those prospective Buyers out there.

Let me explain.

What’s been happening in Real Estate is simple: the supply and demand have gotten out of whack again. As there were lots of new home buyers flexing their muscle in Spring, this gave off an artificial aura that the Real Estate market was back on track, which led to a lot of people putting their homes up for sale in May- July. But now it appears that the tax credit mainly accelerated purchases by people who were going to buy anyway, rather than creating new purchases of homes. With the tax credit gone, and one of the largest excesses of home inventory on the market in years, the market is now more aggressively seeking its own natural price and sales levels. Demand is far lower, so prices have to come down before sales will completely normalize.

It will continue to fluctuate because sellers don’t know where the sweet spot is in pricing, and our less-than-stellar hiring in the job market makes them unusually hesitant. Many sellers put their homes on the market for what they hoped was a reasonable price, and then took them off once they got no offers. That means the prices are still too high, and it will take months or years for so many sellers to accept that. With the tax credit gone and another dip in sales, we may be getting closer to prices that are real and sustainable. The faster that process works itself out, the better off we will be in the long run.

The great news for Buyers: the abundance of inventory and these lower prices mean now is an excellent time to reap the benefits.

Buyers: Don’t miss out in buying that great house, as interest rates continue to get lower too.

The stars are in alignment. Both lower interest rates and lower prices are nicely combined for the Buyer to make that perfect purchase.

You have a huge choice now of so many great homes at great prices. Don’t miss this huge fall sales clearance event!

Posted by:  Rick Smith