It's a Buyers Market

You may have heard some of the news about the mortgage industry and foreclosures. The headlines are tragic and border absurd. "Builder Confidence Lowest Ever" "Prices Falling" "Foreclosure Rates at Record High"... Lions and Tigers and Bears-Oh MY!

So, it's a buyer's market. It's not the end of world. I haven't heard of a single fatality resulting from the "Mortgage Meltdown". When you read/watch the news, you get the impression that this "Meltdown" is the great Apocalypse.


The days of buying a home and selling 2 years later for a $100k profit are all but gone. It used to be said that you should live in a home for 3 years to break-even when you sell. It seems we have forgotten those days.


It's not much of a surprise in today's world. We want everything fast, cheap, and to make a huge profit when we sell tomorrow. Instant Gratification is the name of the game. If it doesn't happen like we think it should, it's a tragedy.

Yeah banks and some people are loosing money hand over fist. Yeah there are tons of foreclosures around the country. But it's not the end of the world. It is, however, the beginning of a new era.

We are entering a new day. A day of renewed ethics in lending. A return to responsibility in financing. The market has shifted. The buyer's have the power...it's a buyer's market again. Excuse the cliche, but money is power. For those who are qualified or have money, conditions couldn't be better.

The people looking to buy homes enjoy more inventory and more motivated sellers than ever. Prices and incentives are competitive. Time and inventory are on the side of the buyer. The average sales price/list price ratio is decreasing meaning sellers are negotiating more than before. Those looking for investments have a strong (and growing) renter basis to draw from. There are more homes available for purchase from banks and pre-foreclosure than ever. The loan programs for the credit-challenged have all but disappeared. This, is our new era. How long it will last, we can't say. Carpe Diem.

David Bach in his book Automatic Millionaire Homeowner encourages readers to hold on to real estate investments for the long haul 20+years. He proposes that financial freedom and security in the future is best achieved by keeping real estate--not selling it. If you can follow his model, you can take heart and be encouraged. Then, maybe go shopping for your next investment and take advantage of this new era.

For a free copy of the book listed above: Click Here