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Gauging the Bottom of the Housing Slump Before You Buy

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By : M Shane    99 or more times read
While home values seem to be wavering around what might be the bottom of the decline, home owners might want to be a little more patient before jumping into home ownership at this time. Many sources were speculating that the bottom of the housing crash was happening this past spring, when the number of homes on the market in many major areas fell by over 3.5%. However, we all now know that this was in fact a “false bottom” to the housing crash and that it did, in fact, continue to fall even further.

It can be difficult to discern what is going on in the housing market if you read media reports on the topic; some articles will be regarding home sales, some will be about the number of homes on the market, and still other articles are about home values. Each of these aspects contributes to the housing market rebound, but the information should be taken together to get a good picture of the possible recovery at hand.

It’s hard to say when the bottom has been hit until it starts to recover; most recessions have some little dips, jumps, and false starts in them where it looks like the market is having a recovery and then takes another plunge again. This has already happened a number of times over the last few years already and may take another plunge before we climb out of this slump.

Another factor to consider before you buy a home is that the bottom of the market slump may well last quite a while and so there’s really no rush to buy right now in most areas because the market is not suddenly just going to shoot back up to pre-crash prices. The market doesn’t usually spring back after a crash, it lingers at a low level for a while first. If you’re looking to take advantage of the first time buyer’s incentive, it will last until the end of April, which gives you time yet to watch the market as well.

The housing market is low right now, that much we are all aware of. However, it’s really hard for anyone to truthfully say that it’s at the bottom of the slump or not; if you wait to see how the market reacts over the next few months, it’s likely that you will be able to find a similar deal to what’s available now or even possibly a better deal.

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