Friday, March 20, 2009

Homeowners In Trouble as Real Estate Values Keep Dropping

By Sarah Bennet

Right after the the subprime disaster of 2007 and the mortgage collapse of 2008, numerous homeowners are facing a grim picture as real estate values plummet along with the stock market. This drastic drop in real estate values has hit homeowners severely. But it has also produced a buyer's market for savvy consumers who would like to capitalize on the low housing prices to buy a home in the current market.

Real estate values dropped as far as eighteen percent according to one report on the current market. Homeowners who once regarded their house as an investment and a nest egg are now watching their homes being valued for much less than what they consider the right value. Homeowners nationwide are trying to deal with the fact that their home's value may be lower than the purchase cost.

As property values have spiraled down, so too have new home starts. The availability of foreclosed homes has loaded the market with available homes that are affordable as banking companies and other lenders are willing to let go of these homes for substantially below their worth. With housing values spiraling down, numerous buyers see an opportunity to jump into the housing market and go hunting for a deal.

In the current real estate market, affordibility is crucial. Numerous people who can make a substantial down payment and have good credit are now positioned to purchase a home and are taking advantage of the current conditions to pick up a home for a low price. Despite the recent financial meltdown, if you have healthy credit and can make a down payment, there are numerous possibilities to loan money.

Homeowners who are forced by financial circumstances to sell their home are realizing that it is a buyer's market. They surely will not get their asking price, not in this buyer's market. The current market is obviously not a good time to sell your house, unless it's forced by financial hardship.

The reduced property values combined with the record amount of foreclosures, poor statistics for the new housing market and sluggish home sales shows an unpleasant picture for the real estate market. While reduced housing values are not a good omen for the economy as a whole, they do present a chance for individuals who can actually buy a house in these times. With this many houses on the market due to the foreclosure explosion, numerous homeowners who want to sell their homes are finding themselves competing with lower priced homes put up for foreclosure.

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