Patty McMillen

The recession may be over, but consumer and business debt – coupled with rising foreclosures and unemployment – will make for a slow recover.

“Although the worst recession in seven decades likely ended in the current quarter, its negative effects will linger will into the next decade.”

Unlike many past recessions, the latest one was spurred by consumers and businesses taking on too much debt rather than imbalances in the “real” economy.

Because of that, not only will financial institutions be less willing to lend, but consumers and businesses will be less willing to borrow.

“This process differs from normal recoveries where there is a natural inclination to borrow and spend after a period of Fed tightening that induced recession in the first place. This time around, the Fed started easing monetary policy well before the beginning of the recession, but the economy is only now showing, “hopeful signs  of recovery!”

Excerpts taken from Inman News, September 16, 2009

More choices, better deals to be found!

Its no secret that the real estate market has slowed down in recent years. Houses aren’t selling as quickly as they did in the white-hot market several years ago, which means people who are selling their houses today have to work harder then ever to make a deal! And that’s a great thing for buyers.

            Overheated real estate markets, like we saw a few years ago, result in too many people shopping for too few houses. That drives up prices as multiple buyers make bids on homes and sellers hold out for the very top dollar.

            In today’s market, though, there are a lot more bargains to be found. Sellers have to price their homes more aggressively, making now the perfect time for smart buyers to get a great deal.

Buy Low, Sell High

When someone invests in the stock market, they’re advised to “buy low and sell high.” This means to buy stocks when their prices are depressed and sell when their prices have risen, and the same advice could apply to purchasing a house.

            To be clear, housing hasn’t been as historically risky as the stock market over the long run, and there are a lot of reasons to buy a house other than to make money when you sell. A home is truly a home, not just a line on your investment sheet.

            But if you want to make money on your home over time, it makes sense to buy at a time, it makes sense to buy at a time when the prices have decreased rather than when they’re at their peak.

More Choices to Pick From

If you tried to buy a home several years ago but struggled to fin the perfect place – or couldn’t afford what you really wanted – you might be pleasantly surprised by today’s market.

Here are more homes for sale at better prices today, making it the perfect time for picky buyers. If your dream home was just out of your price range a few years ago, for example, you might find it’s become affordable for you today. Neighborhoods that were out of reach could actually be attainable now.

That’s the great thing about shopping in a buyer’s market. Sellers are more willing to negotiate, and buyers have more options to pick from.

And in real estate, like so many other things in life, timing is everything!

Article  from “7 Reasons to Buy a Home Now”