Does the slow housing market mean that a buyer can get a "deal" in real estate?

Question

Is this a good time for buyer because sellers may be more inclined to make deals, ie: lower the price of the property?

Answer 1

The 'deal' today will not look like a deal in a year or two! The market will go down for a few years!



Keep in mind...........


Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I believe will apply to any of the hot real estate markets of the past five years.....visit:

http://sandiegofsbo.blogspot.com

http://www.brokerforyou.com/blogger/index.html

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us
http://www.la-jolla-real-estate.info
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com

Answer 2

That would depend on what you consider a deal, and where you are looking.

For example, in Florida the home prices went through the roof 2 years ago and the market was hot. Now, that market is flooded with houses and prices are falling. But the interest rates are up. If you have been thinking about a house in Florida you can get a better deal than you could a year ago, as many of the sellers are willing to give concessions and negotiate.

Answer 3

Bingo! We're definitely in a buyers' market right now because the interest rates have increased, thus making housing more expensive for potential buyers. That reduces the number of available buyers and effectively increases supply. On the downside, I would think that it's more difficult to use past "comp" sales to figure out what the real value of the property would be worth. Hmmm-kind of a conundrum.

Answer 4

you can get a better deal now then you could of a year ago but the housing market is still overpriced so ridicously it is laughable ./; I bought my home in California and it is a 4 bedroom 3 bath house with a 3 car garage in a nicer but not richer neighborhood . I paid $44.000.00 for it in 1975 and since have upgraded the kitchen and all the baths . Total cost maybe $37,000.00 or so as I did most of the work myself . We called a realtor in and asked what we could get for the house and we were in no rush to sell and he said I can get 975,000.00 in a week. I almost dropped dead on the spot .it took him 3 weeks and we got $969,000.00 and now we are moving to florida . The realtor said a year ago he could of gotten a million easy and maybe 1.1 but the market softened. I would not of paid more then 450 for my house so take it for what it is worth .I was astounded .

Answer 5

Right now, the housing market is as soft as a smurf. you can bring your lowball offers and get a good deal compared to today's list price.

However, consider basing your decision at least in part on what the inventory/supply/demand situation is. You may wish to wait longer. Many people think the prices are going to go a lot lower!

Answer 6

Yes,

Depends on how slow it is?

and if the current owner can not pay the dues and he needs get rid of the house he has to sell.

If there are no buyers he has to sell for who ever gives the most and you could be the only one left.

You will get a good deal.

Answer 7

I don't know that the housing market has started slowing significantly (especially where I live in the NYC area).
But generally, you are correct in your understanding of a 'slow housing market'.
I've always found the best deals for buyers to be foreclosures :)