The National Association of Realtors announced on Sept. 25, 2006, that a key housing statistic, the median sale price of a home, had dropped in August 2006 for the first time in eleven years.
This means right now it's more of a buyers market for homes.
With the supply of homes nationwide currently outweighing the demand the housing market, which is typically a seller's market, has now become a buyers market.
"What that basically means is that your buyers have more purchasing power right now. Also, the interest rates have dropped a little bit, so with the combination of those two, anyone looking to purchase or buy a new home should do so in this time", Realtor Justin Watt said.
Watt has worked for Keller Williams Reality for nearly a year and said even before he got into real estate he knew of the business to be a sellers market.
"It is a long running sellers market for over a decade so we have now shifted into a buyers market, which is a very rare thing," Watt said.
But this rare occurrence could benefit you if you are a buyer looking for a home.
"It is a positive thing because interest rates are down, they have less competition in the market, so they can pick and choose which house they want and get it for a better price than if it were a sellers market", Watt said.
Watt also said that this increase in purchasing power and finance capabilities may also draw more buyers into the market which will not only be a positive for those selling a home but should in turn stabilize market conditions back to normal again.
Until then he offers buyers this advice.
"To look for the best mortgage company they can find, find the best rate, and to kinda be choosy with what home they want to go with", Watt said.
The National Association of Realtors also says that housing prices are expected to continue to have a limited fall throughout the rest of the year and that the sellers market transitioning to a buyer's market can be healthy for some local economies.