Figure 1

The media paint the economy in a gloomy light because nothing sells quite like bad news and to some degree bad news can become reality if it is believed in the minds of enough people.  However, is a bad economy bad news for everyone?  Is it bad news all around or might we all find opportunity should we decide to look for it?  Many wealthy people got that way because they could recognize a baragin and seized the moment.  Are you missing your moment?  After this one, how many more buyer markets will there be in your adult life before you do something about it?  You can find a bargain in any real estate market, but this is especially so in a buyer's market.  Indeed, the best market to find a bargain is in a buyer's market.  Even sellers who suddenlty become buyers can take advantage of the countless opportunities present in todays housing and mortgage crisis.  Common sense and Economics 101 says that when housing inventory gluts the market with homes, the supply will at some point exceed demand and viola, a buyer's market is born!  This results in prices trending downward over time and in direct proportion to the overabundance and increasing supply on the market.  Shortly thereafter, buyers begin to notice that prices are lower.  However, a problem for many buyer's is indecision due to uncertainty. When is the appropriate time to buy since if a market is in a downward trend when will it hit bottom.  If they buy to high they could get stuck with a house they paid too much for.  It is unlikely this would ever be the case unless you failed to consult with a professional realtor, and made a really bad purchase.  Your home should easily increase in value because home prices have historically increased over time. Alternatively speaking however, if buyers wait too long, they could miss out on opportunity althogether when it is time for it to swing back to a seller's market.  As I've written before, you can't time the market.  I sell quite a lot of real estate and honestly, I can't time it either.  If you notice in Figure 1 above, sellers can afford to take a lesser price on their home in a buyer's market because trading up to a larger home will turn them into a buyer buying in a buyer's market which should net them a higher savings on the purchase of the larger more expensive home.  The same thing works in the reverse in a seller's market.  In this type of market, the seller should net an amount that is above top dollar for their home, but when they become buyers after the sale, that earned premium can be erased or negated when they in turn pay more for a larger home offered at a higher price.  What can we learn from this?  So long  as money is available for lending and interest rates are low, it is always a good time to buy a home.  Make it you business to know about the market and hire the best real estate agent you can find to help you with the search and purchase of your new home.  Bargain homes are for sale out their right now and in spite of what you may have heard in the media, banks are still making home loans to everyday people like you and me.

Lets go home hunting!

By Bernie Christian