THE CLARKE AGENCY, INC.

Cathie Elliott, Real Estate Broker/Owner

Currently, America is experiencing one of the worst down markets in recent history, and the world is feeling the effects of the down market as well. For most Americans, this trend has had a negative effect on their portfolio, as their stocks and retirement funds have seen a steep decline in value. For anyone considering a real estate purchase for personal or investment purposes, there is a silver lining. A down market translates into a buyer´s market in real estate.

What exactly is a "buyer´s market"? This term describes the economic conditions in which power shifts from the seller to the buyer. A buyer´s market also means that there is an increase in affordable properties on the market, because real estate has been devalued and prices have been driven downwards.

Another factor that makes this a great time to buy is interest rates. According to Frank Nothaft, Freddie Mac vice president and chief economist, "Interest rates on fixed-rate mortgages declined for the 5th straight week".

Based on Multiple Listing Service reports, there is definitely an overflow of unsold homes in local markets. For the real estate investor or home buyer with good credit, decent income, and the money for a down payment, a down market makes an excellent financial opportunity. The first step in taking advantage of the current financial climate is to get pre-approved for a mortgage. From there, you can begin the process of searching out great deals in the housing market.