It's Time to Buy Real Estate

If you have some cash and good credit, you should be buying real estate. Right Now!

Using Economics 101, it is easy to figure out the basic laws of supply and demand. High supply leads to low demand and low prices. At this moment, the supply of real estate is high and qualified buyers are low. Thanks to the mortgage implosion of 189 lenders found here: The Mortgage Lender Implode-O-Meter, the availability of stated sub-prime loans have disappeared and the lenders have tightened their lending requirements. Thus, filtering out a lot of people that were once qualified for a loan. In addition, there is lower consumer confidence and a shaky view of the economy and the stock market as a whole.

As of September 2007, the National Association of Realtors or reports inventory of housing in the United States at 4,399,000 a 16.3% increase over 2006. Prices have gone down by 4.2% nationally since 2006. (National Association of Realtors, Source)

Now you may be asking yourself, Why should I buy right now? Because many forecasters have stated the market will bottom out in 2008. First, I would say that many forecasters are never exactly correct on their timing. Secondly, if you keep waiting and prices go up again; you will not be getting a great deal. Lastly, prices are low, not as low as in the early 90's but low enough.

Just remember real estate is a local. You may be living in an area where prices are stable or even rising. But for many middle-class and lower-class neighborhoods around the country prices are falling.