Many sellers were hoping that their houses would be worth a lot more now, because the housing bubble burst some time ago and should be recovering. Unfortunately, that’s not necessarily the case. Housing prices are still very low, and it’s hurting the sellers who are having trouble getting out from under payments that they can no longer make due to job losses and other factors. Of course, buyers are also struggling if they don’t have good credit and large down payments, because banks are much more careful today about who they lend to. Now, economists are talking even louder than before about a double dip recession.
In other words, it looks as though housing prices may go down again before things improve and the prices start to go back up. There are no guarantees that this will happen, but it’s certainly possible. That’s making both buyers and sellers nervous. It’s also making the banks nervous, because they don’t want to loan money on something that’s going to go down in value. That has already happened to them with the bursting of the housing bubble, so they are understandably more cautious than they were just a few years ago when anyone could get a loan.
If you’re considering buying or selling a house in the very near future, there’s no reason to stop or change your plans. Just be aware of the issue so you can monitor it. That way you’ll have a better chance of understanding what’s happening in the housing market, and you won’t end up getting stuck with something you weren’t expecting. If you keep up with the news, you may be able to better prepare for the double dip if it arrives. If it doesn’t occur, then it’s very likely that housing prices will go ahead and start to slowly rise, which is good news for sellers.