What is your definition of a bad housing market?

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I sit here and watch the national media and the local media tell everyone we are in the worse housing slump ever. The market is horrible…the sky is falling! Falling for WHO?

I continue to get search engine hits like; “How bad is the Housing Slump in Frederick” “Are prices declining in New Market” “What is the average days on the market in Brunswick” “How to save from going to foreclosure” People are concerned, but still sitting on the fence, because the media telling everyone it’s the worse time to buy.

Early 2000s…houses were selling like crazy, buyers were backed up at the door writing contracts on the hood of the agent’s car, interest rates were low, lenders were writing loans in their sleep…We were in a “great housing” market? For WHO?

Frederick County has more than 2300 homes on the market, Washington County has almost 1500 homes, Montgomery County has more than 5900 homes, Howard county has more than 2000 homes, and Carroll Countyhas more than 1200 homes. That is almost 13,000 homes with in 35 mile circle of the Frederick Area.

It’s not bad for the media. Real Estate magazines are fatter than they have every been, there are more are more ads in a Saturday and Sunday edition of the Frederick News Post and the Thursday edition of the Gazette. There are signs on every corner on the weekends saying “Look at ME!!!” “Look at ME!!!” So really who is this market bad for?

Definitely not the Buyers…First time home buyers and those that are looking for a second home or even a vacation property. Sure, it maybe a little tougher getting a loan today, but here again tougher that what? You have to do more that just breath to get a loan today. And you know what, once you sign the papers on this loan, you shouldn’t have a worry in the back of your mind that you can’t actually afford it. Lenders have tightened up their requirements after the debacle that we living through right now. There isn’t anything called “Creative Financing” anymore. It’s more like this: Good Credit + Real Income + (optional) Down Payment = Loan to Dream House.

Again who is it bad for? Home owners that have bought their home in the last couple years and are trying to sell now. Home owners that have fallen victim to bad loan advice and have not corrected it. It’s bad for investors that are dumping their properties to get out of them. (We are not dealing with the Stock Market) It’s really bad for those that have to get out of their home quickly due to financial burdens.

My advice…buy now! But only buy, if you plan on living in your home for the normal time of 3-7 years. Your home is a long term investment, not a short term high risk investment. Buy the house because your family will grow up loving the area. Prices are low, inventory is high…you have choices and homes are being presented in the best shape they have ever been in…why? They want to sell to you. Go Shopping!!!

Related posts;

Buying A House in Frederick MD What do you need to know?
Buying a house in Frederick Part two
Buying a Home in Frederick - Home inspections Part III —

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October 22, 2007 · Filed Under Frederick MD Real Estate, frederick real estate

Comments

6 Responses to “What is your definition of a bad housing market?”

Ines on October 22nd, 2007 11:47 am

Bob - in the real estate equation, the market will always be bad for either the buyer or the seller. The problem is that the media focuses on the negative, does not matter where the pendulum swings.

I totally agree with you - it’s a great market for buyers, they have the upper hand, they can make requests that they would not be able to make in a seller’s market.
gotbob on October 22nd, 2007 2:21 pm

Ines, good point. If you are selling in this market, you are also buying in this market. It’s a wash…unless you move to a different market.
Ginger Wilcox on October 23rd, 2007 10:50 pm

Bob,
I am just not getting it. Why aren’t buyers jumping in? This is a great opportunity for buyers- one we haven’t seen in years! The media needs to be flashing that headline- EXTRA, EXTRA, read all about. Now is a great time to buy!
Joanne Hanson on October 26th, 2007 5:38 am

Bob, our market is always different from everyone else, and we were there about 3 years ago. Ours has picked up again, and it is a good market for Sellers, but not so much for Buyers! People who bought 3 years ago are in a good spot today.
gotbob on October 26th, 2007 9:41 pm

Joanne, Vacation and Resort areas around here are doing OK too. Folks with good credit aren’t affected by the subprime market issues.

It’s a perfect time to buy for that buyer! Have a great weekend.
Ignore the Headlines - finally the media gets it | Focus On Frederick.com on February 20th, 2008 1:47 pm

[...] stay away… Yes, things haven’t been as productive as they used to (for sellers). I have written many times about this market too. The media like to to generalize the numbers for the most part. They quote the national averages [...]