As consumers, Americans rejoice when prices of everyday commodities drop. We welcome price reductions and sales at the supermarket. We gush at the prospect of lower gasoline prices at the pump. We become ecstatic when we find a widescreen HDTV 50% off.
So, why is it we get all glum about lower home prices? Sure, not everyone benefits from lower prices: mainly homeowners looking to leverage their equity or make a quick profit, brokers and agents looking for sweet commission payouts, and your local tax collector. But what about your average homebuyer?
Lower prices allow more people into homes who were previously priced out of the market. Overall, that's a good thing. Combine that with relatively low mortgage rates, and things should be pretty rosy from a buyer's perspective. Privided that they have a good credit rating. If you have lousy credit, pay off some debts and clean up your credit report before trying to buy. If you can't handle your current debt load, there's no way you can handle a $300,000 mortgage on top.
I don't think we've found the bottom of the market just yet. Sellers need to get a dose of reality and price their homes for the current market. Either that or hang on to them until current inventory drops and demand improves. Stop dumping your properties.
It's called supply and demand. Look it up, it's a concept that's been around for a while.
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