The Housing Market: A Good or Bad Time to Buy?

Consumer confidence plays a defining role in the housing market. If consumer confidence wanes, the housing market experiences a downturn. If consumer confidence soars, the same market experiences an upswing in sales. As a consumer, it's important to follow the economic changes in our country because these changes can affect your own bottom line.

So, where are we now? You've heard about the good, the bad and the ugly for the past year. The housing market was on a major upswing for five straight years and then hit a snag last April when gas prices soared and interest rates increased. We heard about "bubbles" bursting in the West, a slowdown in the South, and over-inflated prices.

As a buyer, what are you to do? Do you wait or do you buy that house? There's good news on the horizon for 2007. The U.S. economy ended 2006 with a hopeful set of reports that showed consumer confidence soared in December. These reports also predicted that the worst of the downturn in the housing market might be behind us.

Consumer confidence rose to an eight-month high in December and was comparable to last April when it hit the highest point in four years. The National Association of Realtors reported that sales of existing as well as new homes actually rose in October and November, with the first back-to-back increase since spring. This is predicted to be a turnaround in the housing market. Prices are expected to continue to fall for several more months. It will continue to be commonplace for sellers to lower their asking prices to attract buyers for their homes. Buyers will have an advantage with low interest rates and more reasonable home prices.

Bottom line: Buy the house you've been looking at. The market has shifted from a seller's to a buyer's market.

Labels: Real Estate, Real Estate Agent

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