There hasn't been a better time to buy a home in a long time. That's because there are so many new developments being constructed, leading to so many new homes on the market. This surplus of homes mean there's a lot of choice for consumers, but also, lower prices. With so many options, who wants to pay top dollar? Excess homes are driving prices down, and that's good news for buyers.
With home prices getting lower every month, and, according to the National Association of Realtors, over 5% more homes on the market, supply is outweighing demand. According to Chris Isidore's recent article for CNNMoney.com, all the major luxury home builders are taking losses. Bad news for them is good news for you. Many new luxury master-planned communities are popping up in some of the most gorgeous regions in the state. Take advantage of this and get the lifestyle you've always wanted, for less than it would have cost a couple of years ago.
Those whose real estate investments are suddenly worth less than they were a few years ago shouldn't be too discouraged. While selling now may gain you less equity than even a few years ago, if you purchased your current home more than 6 years ago, you are still making a hearty profit. Focus on your gains, not your losses.
Another thing for discouraged sellers to remember in a down market is this. Almost every seller is also a buyer. If you aren't selling your home so that you can buy a new one and move, then by all means, wait until the market rises again. But chances are you are going to sell and buy virtually simultaneously. This means that while you may be selling your home for 10-20% less, you are also buying at the same discounted rate. If you choose carefully, it's still easy to come out ahead.
If sellers are really concerned about their loss in profits, try doing all those little cosmetic upgrades that increase your buy ability. Eliminating clutter in your home and yard, combined with a new coat of paint, is almost guaranteed to get you closer to your asking price than a disorganized home that's too full of your own personality. Buyers want a blank slate, and while this doesn't mean an empty house, it does mean a more neutral and fresh house. Do what you can to add what they call "curb appeal" and make your home as attractive as the many new homes on the market, minimizing the negative affects of the housing surplus on your sale.
