Thursday, April 30, 2009

Where is real estate prices headed for?

There seems to be a lot of confusion regarding real estate market whether real estate prices are still very high or have stabilized or still there is a chance for the prices to fall down.

We need to realize that the real estate market is all about value. At any given point of time the value of the real estate is not determined by the asking price but by the amount
the buyer is wiling to pay. Today the situation is such that there is a dearth of buyers in the market and in case the seller is unwilling to negotiate buyers are ready to walk out of the deal.

Even easy mortgages are hard to come by and financial institutions are not willing to part away with loans without complete documentation.

With economic insecurity on the rise people are very much ready to part with their properties as it is becoming increasingly difficult to get the high mortgage interest off their back.

There may not be any kind of free fall in the real estate market at the moment but you can’t even talk about any kind of stability also.

Still nothing can be said about the topsy turvy real estate market but one thing is for sure that gone are the days when you could put any big price on the property and still manage to get a good number of offers on it.

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