How To Buy a Home in 2007
This has led many buyers to wait it out until the market levels out at its lowest pricing. Unfortunately no one can predict when this will be, or if a certain areas will experience complete market devastation. What may be good for buyers is the rapid decline in home values and the incredible inventory of homes available. Is the housing bubble bursting? or just deflating...
Barrons Magazine stated in August of 2006 that sales are down by 10% and predicted that housing pricing will fall 30% over the next three years. Large cities such as Boston and areas in California and Florida have been feeling the effects of this hard hit in falling home prices.
In May of 2006 Fortune Magazine warned buyers beware of areas experiencing market devastation, separated into 3 categories, "Dead Zones", "Danger Zones", and "Safe Zones". The Dead Zones included Boston, Las Vegas, Miami, Washington DC, Phoenix, Sacramento and San Diego. Danger Zones included Chicago, Los Angeles, New York, San Francisco/Oakland and Seattle. And Safe Zones included Cleveland, Columbus, Dallas, Houston, Kansas City, Omaha and Pittsburgh.
The zones are a good rule of thumb, but to be absolutely up to date - check CNN Moneys latest home prices, which shows the exact appreciation or depreciation for 172 markets. If you are looking to buy in a depreciating market, make sure that you can afford the home for the long haul, make sure that you have a large emergency fund and don not be too concerned if your homes value drops for a few years. The market will turn around, it always does.
The conjoining trend for 2007 is vanishing easy money such as bad credit loans and no down payment loans. Banks are tightening their belts. Availability of easy to obtain financing is disappearing as more banks which provided these types of loans go out of business. Qualifications for home purchases are becoming much stricter. Seeing the market as it is, it is actually good for home buyers to have stricter guidelines to avoid foreclosure, but it means more work for the home buyer. You will need to prove total financial job security. You will need to have good credit (between 650-680 is ideal, but 620 is still the minimum). You will also need a substantial down payment.
If you are not in the position to provide these things, it may take some work to get there, but will be well worth it in the end, and you will be much better situated for financial success.
Buyers in 2007 should remember that preparation is key. Do not take anyones word for it, not even mine. The market is changing drastically and will continue to do so in the next few years. Nobody really knows what is going to happen. Make sure to do some homework before you purchase your home.
Related Tags: debt consolidation loans, bad credit repair, real estate bubble, real estate market, housing bubble
Trisha Dingillo is an Illinois Licensed Mortgage Broker and Financial Planner. She is the author of the site Bad Credit Repair which helps people understand how to repair their credit and find the best credit repair services in this important time of change.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- Competing Bids
OK, here's the deal. You have found that perfect home. Its in the right area, has all the right bene - Home Buying 101 - How Much Earnest Money Do I Need?
Every home buyer loves the process of visiting homes and finding that perfect place to call home. Si - How to Avoid the Five Biggest Home Buying Mistakes?
While buying a home is without a doubt an exciting endeavor in some cases home buyers overlook thing - How to Find the Right House with the Right Layout Design?
Buy a home with a layout design that suit your needs and be comfortable for you is important. Unfort - Guidelines for First Time Home Buyers
Many first time homebuyer's feel as though they are limited in what they can buy because of budget r - Find The Best Realtor In Chicago
Moving from one home to another can be a stressful time. One the one hand, you are leaving behind a - Why Real Estate Options Are Less Risky, More Profitable, and Easier Use Than Most Property-Flipping Strategies Being Taught Today
The problem with 99 percent of all theproperty-f lipping strategies being taught today is that they - Buying Property in Mexico
If you plan to buy property in Mexico it is very important you receive as much information as possib - Struggling First Time Buyers In The UK - Look At Spanish Property!
With the average UK property price now reaching 100,000 pounds, rising mortgage rates and a tax mad - First Time Buyers
Interest rates are among the lowest in decades and the availability of housing of all varieties is a
Most viewed articles in this category:
- You Can Afford Your Dream Vacation Home
Part of the American dream is to own a second home where your family can gather on holidays or retre - 8 Real Estate Negotiation Tips
When buying a real estate investment:1. Check if the seller is motivated to sell the propertyIn real - Probate Real Estate - The Road Less Traveled To Real Estate Riches
Wonder why it's become so difficult to obtain foreclosure properties at deeply discounted prices? D - Where to Buy a Vacation Rental Home
So you've made up your mind to get into the vacation rental business. Where should you buy a propert - Hillsborough County Real Estate - Where the Younger Crowd Wants to Live
Hillsborough County, Florida includes the large incorporated metro areas of Tampa, Temple Terrace an - Sarasota Real Estate Sales Downtrend: A Buyer's Opportunity
Experts give advice to prospective buyers: Don't be afraid to bargain for your dream home in Saraso - 5 Myths of UK housing Market
1. A shortage of supply means prices will never fall. Often people will say because of high demand a - Laguna Niguel Real Estate Buyer's Guide
Laguna Niguel is a large community in South Orange County, CA. From a Real Estate Prospective, Lagu - First Time Home Buying
First time home can be a real challenge from learning all the real estate "Lingo" to trying to get t - Why Not in the Philippines?
According to an Ibon research, an estimated 3,000 Filipinos leave the country everyday to find jobs
