Is the Real Estate Market as Bad as They Say it Is?

You read reports almost on a daily basis about sub prime lenders going under, thousands of houses for sale on the market, and rates climbing. But is it all bad?

In the northern center of Massachusetts, I beg to differ. Rates are still extremely competitive, and while it's true that there are hundreds of houses available, the buyers are still out there looking.

Spring has historically been known as the biggest market of the year. People come out of the woodwork and defrost, and start looking for a new home. This season has been no different. The phone is ringing and there are sales to be made.

As of today, March 16, 2007, rates are listed at being 6.14%. Now, granted, these are for your premium borrowers with down payment available and good credit history. However, comparing this rate to when I got my mortgage in 2002, they are a good half of percent below where they were at that time. It's a perfect opportunity to get out there and purchase!

The media likes to scare people with doom and gloom. While it is a terrible time for people that have to sell, because they are facing foreclosure or bankruptcy or even relocating due to a job transfer, it is still possible to sell in a reasonable amount of time. You won't be receiving the proceeds that you would have a year ago or more, but the housing market is not at it's all time lowest by far. Short sales can be negotiated with most lenders, leaving it possible for a seller to still get out of their situation and giving them a chance to move on. Lenders have inventory of an all time high of pre-foreclosures and foreclosures, making them easier to negotiate with.

Buyers have more inventory than ever, which gives them a perfect opportunity to find the perfect home without having to spend an arm and a leg. They are not stupid, they follow the market... and it shows!

Listen, but don't believe everything you hear. Yes, sub prime lenders are in trouble, but that doesn't mean the real estate market has come to a halt. It's easy to get caught up in a "no way out" mindset, but it doesn't necessarily have to be that way! Consult a good, knowledgeable real estate professional, and see if they can help you out.