Is it a Buyer's Market When It Comes To Real Estate, You decide...

Buyers have the upper hand when it comes to real estate these days...in a majority of cases.  Sellers don’t like to hear this kind of news, and who can blame them, after-all no one likes to have the under hand.  This means that if you are a homebuyer in Apple Valley, Victorville, Hesperia and surrounding areas it's a great time to buy and even better if you don’t have to sell a piece of real estate to buy a new one.  What makes it such a great time to be a buyer?  Mortgage rates, home prices and inventory.  That’s right, these three items add up to create prime buying power.

The first thing to fully understand, if you are a buyer or seller, is the market itself.  Seldom are markets 100% one way or the other.  There are always niches that need to be understood.  For example: in the High Desert there is a substantial amount of Bank Owned real estate (REO's).  REO properties require unique negotiation processes that are different than negotiating with a real live seller or even on a Short Sale property.  If your agent is not fully versed and experienced in this area you may never see an accepted offer and thus be condemned to look at homes forever.  Regardless if you are buying or selling a home make sure the agent you have working for you is well experienced in the niche you are looking in.

Mortgage rates are low, averaging just over 4.5% for a 30 year fixed rate mortgage, and they don’t appear to be heading up any time soon.  If you have a job and a steady source of income as well as good credit, there couldn’t be a better time to buy a new home.  Yes, it is tougher today to get a loan than a few years ago, but if you qualify you've got a lot going for you at this time.  Check out current average interest rates on Freddie Mac's Weekly Primary Mortgage Market Survey .

Home prices are down.  While there are some areas of the United States that appear to have reached bottom, few areas are rising but merely stabilizing.  Some parts of the country are still dropping and bargains abound.  Yes again, there are a lot of homes out there that need work but if you work closely with your agent there are lots of jewels to be found.  And keep in mind, long term, it’s always better to own than rent.

Inventory of homes for sale is high.  A high inventory means more bargaining power for buyers.  There aren’t a lot of home buyers out there and sellers who are lucky enough to receive contracts from buyers don’t want a potential home buyer to get away.  See May 2010 New Homes Sales Report article.
 
In a nutshell, if you want to buy a home get out there and start looking!