What Is the Low Down? Housing Prices are Still Continuing to Drop

If you have been keeping your ear to the pavement, chances are you have heard the news. The real estate market was hit hard when beginning of the sub-prime mortgage crisis ensued. The price of homes began to decline as the crisis grew in the mortgage industry. How much these prices would eventually drop was an unexpected result that has shocked everyone.



Home prices are still continuing to decline and the number of foreclosures on the market is on the rise.



Current home prices are estimated to be lower now than they have been for the past five years. And it is not just a handful of cities or states that are experiencing this, lower housing and property prices are evident in almost any area of the country.



These movements in price are greatly affected by a variety of factors. One of the most influential is the number of homes that are in one stage of foreclosure or another. Because there is such a large inventory of foreclosure to choose from, it is almost as if homes and properties for sale have to be offered at a lower and lower price just in order to compete with them.



So a greater supply of homes and properties experiencing foreclosure that could sell for way below their market value is greatly fueling the fire of homeowners racing to sell their homes for less than they would prefer. There are also other factors to consider in regards to the lower cost of housing these days. Take the vast supply of foreclosures and add to that the increasing gas prices, lack of interest on behalf of the buyer, a greater rate of unemployment, and a growing number of people acquiring debt, and you have quite the tasty deal for the hungry investor.



Investors currently have the opportunity to buy prime real estate at much lower prices with the added bonus of a higher return on their initial investment. This is especially true if they are investing in foreclosures, as they tend to sold for practically nothing in comparison to what they would sell for in a thriving market.



So when will the price of housing start its uphill climb? That is a question everyone is trying to figure out. Even with the government stepping in with the housing rescue proposal, which stimulated the economy to some extent, the prices of home and properties did not increase overall.



Most people are under the impression that although is seems like the real estate could not get any worse, in regards to housing prices. The real estate market is going to get worse before it gets better and we have not hit rock bottom just yet. Once that happens, the price of homes will probably start to gradually increase. For that very reason, investors should take advantage of the opportunities available and pounce on all the deals out there in the world of real estate. Houses are proposed to go down for about another year or so, so now is definitely the time to do what you can and invest.



There are some signs to keep your eye out for when researching your local real estate market if you are looking to invest in an area that has been subject to lower pricing. First of all, you have to consider that homes are generally priced comparably to others in their area. As an investor, you should also consider that if there is less of an inventory of homes for sale in a particular area, that many of the deals have already been snatched up.



Checking to see if there are a greater number of mortgage applications can also be a good indicator.



More loan applications typically will lead to less homes being available. This, in turn, leads to better hoe prices. Then there are the benefits available for both the buyer and the seller. Buyers are often offered more incentives to get them to buy, such as the omission of closing costs. Sellers, on the hand, have a better chance of receiving their full asking price, even if it may a bit on the low side.