The Housing Market Still Hasn’t Recovered

edif?cio acal, sao paulo april 2006
Creative Commons License photo credit: seier+seier

While there are some good signs in the housing market right now, there are also some serious concerns that have to be dealt with. One of the main concerns is that there’s talk of another sharp decline in housing prices before things start to go back up again. That means that a lot of people who were about to buy houses may hold off on making their purchases because they think the prices will go even lower. If the prices don’t drop, but rise instead, these people may not be able to buy houses at all – effectively shutting them completely out of the market.

No matter whether you’re a buyer or a seller right now, it’s pretty clear that there are still big problems with the housing market. It hasn’t recovered from the problems that it faced recently, and that means that there are serious issues that need to be cleared up. The double dip possibility is just one of those issues. There are also the foreclosure problems that have to be addressed, because housing prices really can’t come back up until many of the foreclosures are gone and the only homes that are left are those that cost more and that are for sale ‘normally,’ instead of being foreclosures or short sales.

If you’re a seller, you may find that buyers are waiting to see what happens with the housing prices. If they drop again, you may be able to sell your house but not for the price that you’re asking for it right now. If the prices don’t drop, you could have an even more difficult time trying to sell your home because buyers won’t be able to afford what you’re asking – they were counting on the drop in prices to help them.