This is a question that is being asked in a somewhat panicked way across the nation. Over past 10 or more years this country had experienced a real estate boom of epic proportions. This boom inflated prices and kept the market in a seller's market for quite some time. This also increased the number of homes and condos being developed and there was an incredible supply and a matching demand. This also made it more difficult for some people to get into a home as rising prices kept some people out of the market. This also caused what is now being referred to as the sub-prime lending crisis. So many people chose to take out 100% financing or high-interest loans to be able to purchase a home and when those mortgages could not be paid it led to an all-time high in foreclosures.
What does all this mean? Well, that is not exactly a short answer. As we have seen there is a slow down happening on a national real estate level. Certain areas are still showing good growth but the major markets that had exploded in past years are definitely seeing a reduced interest. This is a cause of concern for sellers and investors that have purchased numerous homes with the intent of selling them, as the market has moved back into a buyer's market. It also means that those who are currently looking for homes have much more sway and the ability to find homes at great deals if they are willing to deal with foreclosures and short sales.
This has been a huge surprise for buyers in this country as they have not been used to having this much sway in the market. There really has not been a better time for buyers to get into the home market. However, today's buyers should take example from the buyers of the past years and learn a few lessons from what has transpired over the long stretch of seller's markets. Sub-prime lending is really not the way to go. Standard mortgage loans are really the preferable choice. If you cannot get a standard mortgage loan yet then take the time to correct your credit and finances. Don't try to jump into a purchase they you may not be able to pay for in the long run. There are some real lessons to be learned from the recent history of the real estate market. Be sure to learn them before launching a home purchase.
