Is it a Buyer’s Market?

Yes and no, is probably the answer. Interest rates are low–but they may get lower. Actually, they’re probably going to get lower. Housing prices remain high, but that’s going to change, especially with the glut of foreclosures already happening and waves more to come. Financing is also getting harder to come by unless, of course, you have a nice big downpayment and good credit to boot. And when I say good credit, i’m not talking about 630–because even credit around that general area is being considered subprime, or less-than-stellar.

Mortgage lenders, who’ve been making bankloads of money for years, have been shocked back into reality. Buyers–and in conjunction–sellers of real estate are facing tough times all around. Being educated on what’s happened, what’s going to happen, and where you stand as a buyer or seller, will put you in a better position to navigate the depressing process.

The subprime bust has touched and will touch almost every other area of the money chain, unless you’re in those special areas like Seattle, Portland, or North Carolina, where there are other variables that make them the exception to the rule.

Homes over $500k are suffering the most, but even half a million dollar homes are not what you’d think, especially in places like California and Florida, where appreciation has widened almost everyone’s eyes. Purchasers of homes over $500k often take out Jumbo loans, or loans over $417,000. These days, if you live in those areas, it almost seems the norm that you’d have to take out a Jumbo loan just to buy a house.

We are in volatile times, my friends. Act wisely. If I were you, and I am, actually, I would wait the storm out. You can still get a good deal if you know where to look, or if you’re able to get a foreclosure or a very desperate seller. But right now, I’d bet the pros are going to beat you to the punch. Get your wet suits out and ride the way. Good times have to be ahead. Well, I hope, anyway.