What is the Housing Market Currently Like?

Michael Bowler | RSS | Fri, Jun 05 2009 | 0 Comments

In the current status of the economy, people currently selling their homes are battling the lowest prices in decades. Buyers see the greatest purchasing value in as much time, and can only take advantage of those prices if they have the credit, cash-in-hand, job security, and patience. In southern Pennsylvania, just north of my home in Maryland, there is a beautiful home on sale for $279,000. When it listed, just before the recession kicked real estate prices to the gutter, this house went on the market for $386,000. $279,000 is actually an unusually high price for a house in this market considering that, nationwide, the first quarter of 2009 was roughly 13.6% lower than the first quarter of 2008, although the actual amount is debatable, depending on time frames and types of homes. The Case-Shiller index reports a decline as high as 19.1%.

The people who are best surviving the recession are homeowners who do not have to sell and buyers with good credit and cash reserves. Home building numbers are also down. I am not a prospective buyer right now, but just from curiosity, sometimes to just assess the housing market, I look at local homes on the market. Some have been on the market for quite some time, with prices reducing all the time. Sales are going up though.

One of my best friends bought a house recently in New Hampshire with her fiancé. With her fiancé’s decent credit, joint savings, and a little luck, these first time home buyers found a good deal. First time home buyer stats are up due to necessity and ambition. It is currently considered the best time to be a first time buyer. It is estimated that half of the country’s buyers right now are first time buyers, one of the largest numbers ever. There are many opportunities to buy that dream house right now and all buyers have the opportunity to exercise their options.

Even though the price you sell your house for will be low, remember that you can negotiate a low price on another home. If you work a little harder, you can find a very good deal. Fred Soule is the media’s recent example. He sold his Fort Wayne, Indiana home after two weeks on the market. He only got $5,000 less than he had hoped and totally broke even when he bought another home on the other side of the city. When he knew what his house was selling for, he quickly negotiated a good sale on the house he wanted. He believes the sale was worth it. Not only can you make a decent house swap, if you have the credit and find a bank or loan office that is in good shape, it is also a great time to refinance.

Barry Zigas, director of housing policy for the Consumer Federation of America in Washington, D.C . has the best piece of advice for homeowners right now, “Your home is not an ATM, and your home is not an investment. Your home is a place to live…. It’s probably not the time to buy a house.” Home values are the worst in the Fort Myers, Florida area and some areas in California like Sacramento and Riverside/San Bernadino, just south of Los Angeles. The values in Fort Myers dipped a whopping 59.1% and the affected areas in California are down 34%-39%. Some towns are seeing home values increase. Cumberland, Maryland is seeing great increases where median prices soared 21.1%. The major Iowa tri-city (including Davenport, Iowa, Moline, Iowa, and Rock Island, Illinois) saw an increase of 13.8%. Some Midwest areas like Columbia, Missouri, are up 6%.

Related posts:
How you can increase the value of your house in this market
Housing is becoming more affordable
Housing Prices See an Increase In the DC Area

Tags: job security, beautiful home, cash reserves