The Judy Niemeyer Team Blog

It’s bargain time for home buyers—now’s when to find deals when interest rates are low!
Excerpted from Bankrate.com

The real estate market has appeared to have created an ideal climate for house hunters who want the most for their money. Real estate experts say a switch in the psychology of the housing market has helped buyers to see the silver lining around the market’s storm clouds and usher in the fine shopping weather.

"We are now in a solid buyer’s market," says David Lereah, the chief economist for the National Association of Realtors (NAR). "It has been a seller’s market for many years, but now we are seeing people across the country making deals and bringing prices down."

Sellers conceding

Sellers eventually realized they would have to make concessions on their sale prices.  "Now they are making deals," Lereah says. With a listless housing market, savvy buyers in many markets across the U.S. are finding themselves in the best position they have been in for nearly a decade when it comes to price negotiations. Levy does warn, however, that not all sellers are in a dealing mood.

"Even though existing-home prices are basically flattish on a national level, I would issue a bit of caution with that number," he says. "Housing is inherently a local market, and national numbers are notorious for not offering an accurate snapshot of what is happening in a particular market."

So, while prices in Southern California and parts of Florida may be down significantly, other markets may still be enjoying healthy price gains.  On the whole, Levy says to expect prices, on average, to drift slightly lower as a function of clearing out excess inventory. And inventory is the key.

A turnaround in a few months?

Though Lereah doesn’t think prices have yet hit bottom nationwide, he says he believes there are only a few more months where home prices can fall before turning up again. By the end of the year, he expects appreciation to reach 1.4% nationwide.

Though falling prices are bad news for homeowners, homebuyers in those depressed markets are taking a fresh look at those bungalows that were priced out of their reach just a few months ago and deciding to move before the market swings the other way again.

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