Despite efforts to revive the hosing market it still remains stagnate. The home buyers credit is gone and we have historically low mortgage rates but the market still is not picking up. The recent hold on foreclosures because of robo signing, makes buyers question whether buying distressed property is a good idea. I want to tell you that it is.
Buying a house is never a decision that should be taking lightly and doing the necessary work to make sure you are covered from any indiscretion is important. Home prices are likely to keep declining, since foreclosures were held back in 2010 because of robo signing they will be released in 2011. Which means we will have more foreclosures released in 2011 then any of the prior years of the recession. This will drive home prices down even further.
Another thing that is not being considered by to many people is the retirement of the baby boomer generation. Not only is social security and pensions a topic of heated debate and remains questionable were the money will come from to allow this generation of people to retire but they may also sell their homes. Many people downsize in later life from the family home to a more suitable condo or perhaps they are traveling and get an RV. One thing is certain though with the retirement of one of the most influential generations in American history a lot more houses will be put on the market.
Another thing that threatens the housing market is the high unemployment rate. Not only is the job outlook uncertain for most Americans its even more uncertain for our youth. Unemployment is higher among young people than older people 18 -24 year old population has over 20% unemployment rate. This may not seem to shocking at first but if you think about who should be starting a family and buying a house than it becomes shocking. How is the upcoming family going to purchase a home facing such a shaky outlook in the job arena.
There are so many factors that are effecting the housing market and are economy and this keeps most people on the sidelines. It doesn’t have to though if you are in a good position to buy a house than you should! Take advantage of low rates and low home prices, inevitably home prices will rise again more than likely not like they did when they created the housing bubble. One thing is certain the worlds population is growing which means there is a larger demand for houses. If you buy a house smart and know you can afford it and planned for the unexpected you don’t really have anything to worry about.
It is a buyers market and all of the buyers out there should be looking for the best discount on a house than can find. Whether it’s a short sale or bank owned, take advantage of the discounts that are out there. Spend a little time learning about distressed properties so you can make a good purchase. The time you spend will translate into savings and more money in your pocket.
About the Author
Realty Hand LLC staff writer and foreclosure and distressed housing expert.