| If you are considering buying a home, you should feel | | | | rates on mortgages have moved up. As a result, |
| empowered. For the first time in many years, you | | | | there are fewer potential buyers looking for homes. |
| are sitting pretty in the real estate market. | | | | This has created more supply than there is demand |
| The New Home Buyer Mentality | | | | in the market. The result? Home valued across much |
| For the last five or six years, the real estate market | | | | of the country are pulling back. In simple terms, this |
| has favored home sellers. Well, it hasn't really favored | | | | means the market now favors property buyers. |
| them, it has been entirely in favor of them. Buyers | | | | If you are considering buying a home, you need to |
| were both rushed to make offers and given the | | | | adjust your mentality. Instead of rushing around, you |
| ammunition to do so without impunity. Much of this | | | | need to take a deep breathe. There is absolutely no |
| had to do with interest rates. | | | | need to make a high offer on a home because you |
| Unless you have been living under a rock, you know | | | | want to make sure you don't lose it to some other |
| that interest rates have been at historic lows. The | | | | buyer. Homes are not appreciating at the moment, |
| ability to borrow money cheaply added a lot of | | | | so do not buy high! If homes continue to decrease in |
| liquidity to the home market. Throw in fancy loans | | | | value, you will quickly owe more than the home is |
| such as interest only payments and you had a | | | | worth. |
| veritable buying frenzy. With all that readily available | | | | At this point in time, the property market is heavily in |
| cash, home buyers were plentiful and went nuts. | | | | favor of buyers. As a buyer, you need to carefully |
| They wanted to purchase and they had the cash to | | | | access the entire market. You will quickly notice a |
| do it. For sellers, it was a golden situation. They could | | | | downward trend in prices and should be able to pluck |
| ask far outrageous prices and get tons of offers in a | | | | out a few plum deals. In fact, you might want to |
| week. Many buyers would pay outrageous premiums. | | | | wait another six to twelve months to see just how |
| As the market is cooling, the situation has changed | | | | low home values go. |
| and buyers need to take account of this. Interest | | | | |