You must buy real estate was the battle cry last year, unfortunately this was very bad advice at the top of the market. Yet, many people believed prices would never go downward again? For those who have lived decades and followed the real estate market they know full well and good these cycles and trends come and go. It is almost a known fact and the decade-long cycles are so commonplace to real estate. Well today it is a buyers market, which could mean you can expect more shopping, longer waits to sell your home and many more mandatory inspections with the house offers. Additionally, people will be shopping and getting much better deals and demanding much more as well. They will be expecting to pay a lot less and if you keep your price high, your home simply will not sell at all. The housing market generally has new homes come onto the market after Labor Day and therefore there is more competition after Labor Day for sellers and more bargains for low-balling buyers. This could add a 10% increase in houses on the market and that could mean a 10-20% reduction in prices too. What does all this mean for the economy? Well consider if you will the consumer confidence levels which are so important and the Wealth Affect; how people feel about how wealthy you feel. If people find eroded equity they think they are poor and stop spending so much or pulling money out of their home for paying off credit cards or buying luxury type items. This means people spend less money on consumables. But one thing is for certain and that is in a buyers market - Price Rules! Consider this in 2006. |
