Are Falling Home Prices The Ruin of the Future?
What You Need to Know About Falling Home Prices
There's no way to deny it, many areas in America are facing falling home prices. Is this just a temporary set-back, or a darker picture of things to come? If you bought your home when the market was booming, there are some things you need to think about.
It's a Case-By-Case Basis
Yes, the fact of the matter is that falling home prices are affecting millions of Americans nationwide. However, it's on an area-by-area basis. While some home prices have fallen by more than 10 percent, values in other areas continue to rise.
You have to look at various states to get the real picture of falling home prices. First, let's look at Florida. If you were to go by that state alone, you'd think we're all in big trouble. Brand new condos can't be sold and builders are auctioning them off at starting bids of $25,000. However, in some areas home prices continue to rise. In Wisconsin, some home prices have gone up more than 5 percent.
The problem of falling home prices is obviously not widespread -- yet.
Time to Buy?
Right now, you probably shouldn't sell your home. You're not likely to get top dollar for it. But should you buy? Possibly.
There are some deals to be had. That summer home in Florida? If you've got the cash, now might be the perfect time to grab it. Just beware - you might not qualify for a mortgage. Home prices aren't the only thing that have changed lately. Mortgage lending requirements are going crazy too.
Now, more than ever, lenders are declining mortgage applications. The approval process has gotten much stricter.
My advice? Stay where you are and buy only if you must (or if there's a cash deal you just can't refuse). Otherwise wait for the market to stabilize and see where this falling home prices trend goes. Only time can tell exactly where the market will be 10 years from now.