So What Now?

Home prices rose 3.2% this past quarter from a year ago and only .1% from the previous quarter. These rates represent the slowest home price growth in nearly a decade. And the most recent published reports are that the recent months the median home price will fall for the first time in recorded history.

Many economists and analysts are predicting that the housing slow down will continue for at least the next three or four quarters, so well into 2008.

Even well heeled buyers are spooked; these cash or nearly all cash buyers are as anxious as anyone. They may not have the higher interest rates and loan underwriting issues to deal with like the rest of us, but investing a greater sum of money than most of us can even imagine in a potentially level if not slightly depreciating housing market is not how they made their millions.

But all of this doom and gloom aside, people don't just stop buying homes. Of course many now can't and those who can are very careful about what they buy and how much they buy it for, to state the obvious. Evaluate what you need and what you want and what you can do without; this advice goes for both buyers and sellers. Put yourselves in their shoes and most of the time we can find an agreeable arrangement. Be flexible in this market and don't pretend or play games like you know what's going to happen. I know I'm not sure and neither are those highly paid analysts. Know yourself, be patient, and be willing to adapt to this ever changing market.