Taking Advantage of Real Estate Price Drops

The Case-Shiller index may have good news for homeowners recently, with a rise of 1.4 percent in housing prices in the first quarter. That’s not as good news as it is for homebuyers, however, since the over all drop in housing prices is 15% since the same quarter last year. What this combined set of data shows is that we may be turning the corner in some housing markets. If you’ve wanted to buy in some of the most expensive neighborhoods 2008, in 2009 you may finally get the chance of lifetime. Prices are low, you have an $8,000 credit being offered by the federal government, and housing prices are starting to rise. The bottom may be here, if not, it’s very close.

First Time Homebuyers Rushing To Take Advantage

First time homebuyers aren’t necessarily those that haven’t ever owned a home. The official definition is one that hasn’t owned a home in the last three years. Many of these savvy homebuyers have waited years to jump back in the market, and seeing their chance are taking it. Neighborhoods that were once exclusive are offering up deals that may not be around for long. The trend is towards buying in metropolitan areas that have great perks, like museums, universities, hospitals, and more available to them. Young people want to be where the action is, close to their jobs, and able to use public transportation. Most of those areas were too highly priced at the height of the real estate boom, but have since become more affordable.

Sellers Are Sweetening The Pot Even More

In addition to the perks of a great location, a stimulus incentive, and low prices, many homebuyers are finding that they are able to negotiate just about everything they want. Upfront payment of homeowners association fees? Check! Broker rebate? Check! Just about anything someone wants to ask for is negotiable. This attitude may not last long as prices start to rise and the market inevitably shifts from a buyer’s market back to a seller’s market. Until then, many people are lining up to get their little slice of the American Dream.