The recent economic downturn and subsequent efforts by government to loosen up the credit crunch have created a truly unique environment when it comes to home prices. In many places, housing prices have dropped dramatically. According to one study by Fiserv Lending Solutions the national media home price is down as much as 26% since home prices peaked in 2006. In some places, prices have dropped even more drastically.
Median Single Family Home Prices
Homes are selling in places that foreclosures are rampant, such as states like Arizona, California, Florida and Nevada. In the last quarter of 2008, almost half of all home sales fell into the “distressed” category, meaning that they were either foreclosures or short sales. As more and more foreclosures hit the market, traditional sellers have had to cut their prices in order to keep up.
This is, in many ways, a buyer’s market. You can make low home prices work for you, if you know where to look. Finding the right bank owned home, or finding a home where the seller is asking for less than they owe on their mortgage can get you quite a good deal on a home.
There’s another way you can make low home prices work for you, however. You can use the low home prices from short sales and from foreclosures to add pressure when making an offer on a home. Traditional sellers know that they have to compete with these homes, and may be willing to give a lot more in their negotiations than they would have just a couple of years ago.
By studying your local market and exploring all of the available options, you can make these low home prices work for you. You may be able to find the ideal home for your family, and to find it at a much lower price than you’d have hoped for.
