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The Housing Market Today for the Average Joe

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By : Kristine Squiers    99 or more times read
If you are the average person who works a decent job, has a spouse working a decent job, and are thinking about buying a home, here is an easy to understand snapshot of todayís home buying situation.

Banks are afraid to lend money right now because you might be next on the list to lose that job of yours. Banks have been burned by the economy lately, becoming the proud owners of homes they never wanted, canít sell, and canít pay the taxes on. If you are looking for financing, banks are going to be tougher on you than they were before this big economic collapse. You can try to maximize your ability to get a loan by looking for something that you can afford on the income of just one of the two of you. This will make banks feel more assured that even if one of you loses your job, the other can keep making the payments.

Houses for sale are plentiful but are there great deals to be made? There are some deals out there, but remember, homes usually have a mortgage attached to them that has to be paid by your purchase. Also, many homes for sale are from people who invested into upgrading the home, and now are facing the fact that todayís market wonít give them back what they put into it. This will help you find nice homes, but the price is still going to be high because now the home value is based on the improvements too.

Flipping houses was a common phenomenon and those improvements added to the cost for home buyers. Home buyers look for foreclosed homes to purchase because they are usually a lot less expensive. The new trend is that banks are trying to reduce the number of foreclosures. If you are looking at a foreclosed home, make sure you are very careful about having it thoroughly inspected, because it may have been left empty and improperly maintained for a significant amount of time.

Buying a home now has more uncertainty and potential financial issues to consider than in the past. Some people say that for the next five years you are better off renting. Property taxes keep going up to make up for the loss of income from other sources. They are also going up because the cost of running the government has gone up. The costs of home repair are high with prices on materials having increased annually. Also,the economic climate of the area you are purchasing a home in could be uncertain. So many places have seen a total collapse of property values that it is difficult to know if you are making a good decision about the location of your home. The age old wisdom in real estate has always been that the three most important things about property is 1.Location 2. Location 3. Location.

Property purchased today could be the best thing that ever happened to you or the worst. Owning a home just isnít the secure investment that it was in the past. Life goes on though, so if you want to move forward, and feel confident that you can handle the risks financially, plan on buying a home and staying in it for a long time. Wait until the economy improves before investing large amounts of money into home improvements. Play it safe, keep life simple, count your pennies, and donít make any sudden decisions. Look at everything that is available and think it through.

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