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Wednesday, April 23, 2008

Housing Slide...


So home prices keep on falling and home sales have dropped for 7 months in a row now. How low will we go in this unprecedented environment??? Some analysts are saying that we will continue to see the housing market decline and home prices fall well into 2009. Some are even going as far as saying this will be the worst housing slump ever...even worse than the Great Depression!!

With foreclosures at a historical high, a credit crunch, and consumers just flat out hesitant to pull the trigger right now on a home purchase, it is not out of a question that those analysts could be right on.

As of March, the median home price across the nation was right around $200K. How are we doing here in the Seattle area you ask? Well the median home price here is still well above $430K, but do not let that fool you as we have seen more signs of a softening market here in the NW lately and could see it get much worse as we move into the summer.

What's my take on all this? I only have one thing to say, don't try to gamble and time the market if you are looking to buy a home. If you come across a good piece of property for a great price, and you are able to afford it without stretching yourself too thin, don't hesitate to move forward.

Yes, this slump is looking to be unlike any other, it will get worse, we will see blood in the streets. But like many things, the housing market is cyclical and you just have to have confidence in the fact that a great piece of property in the long run is still one of the best investments you can make.

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