An End to the Housing Slump?

After a year of falling house prices in numerous parts of the country and a meltdown in the mortgage market that affected borrowers regardless of their ZIP code, many hope that housing markets will finally start to get better this year.

But if there’s any improvement in 2008, it may be relatively modest.

It’s difficult to get a consensus on exactly when housing will turn the corner.  Local markets will certainly vary, but at the least it’s likely that some of the same problems that plagued 2007 will carry over into this new year.

At best, market conditions could start to stabilize, with home sales regaining strength.  If more buyers get back into the market, some of the huge inventories of new and existing homes for sale can begin to be worked off.

Home price drops encouraged a number of people to put home buying decisions on hold.  In some of the most sluggish markets, sellers who don’t absolutely need to sell aren’t attempting to do so; those who do are offering price cuts and concessions to make the deal.

Our advice to bargain hunters: Don’t wait too long.  If we start to see demand go up and supply go down, prices will go (up) with it.