Lately, it would seem, the heartbeat that is driving the nation’s housing and real estate markets is starting to weaken. Realtors nationwide are noting that all the signs are starting to point to a slowing real estate market. What does this mean, exactly? Well, to some shrewd investors it can mean time to prepare for a dog-eat-dog market.  After all, everyone wants the best price and so, when the market starts to slow down, it would stand to reason that the prices will become more competitive. Or does it? So far, that doesn’t seem to be the case. Instead, the bigger markets which normally show signs of slowing early on, have such a contained amount of properties available that the competition of trying to get the best price is keeping prices higher instead of having them drop down. “There’s been a drop in sales volume, but not in prices,” states Pam Liebman, CEO of the Corcoran Group. 

Even cash offers do not seem to be moving the prices down – yet.  Currently, sellers are simply holding firm on their asking prices and riding out what they see as a small set back in the market.  So what does this mean to the average investor? Well, it can mean that although it is a bit early in the slow down for wholesale bargain hunters to reap the full benefits, it probably is not too early to start saving your pennies for that rainy day contingency.   Afterall Conventional Wisdom (is he related to Confucious?!?) states:  As markets being to dip nationally, chances for making a bargain buy should increase offering excellent investment opportunities.   Are you ready to make your move?

That’s the news from the New York Times a few days ago. ““People have literally picked up their house at the foundations and shook it upside down like a piggy bank,” said Ed Smith, chief executive of the Plaza Financial Group, a mortgage brokerage firm in La Mesa, Calif., near San Diego.” According to NYT’s November 3 article, many people, during the housing bubble, and continuing, have not only taken out loans on the equity in their homes, and spent that money, but also negotiated lower house payments, and spent that money, as well. Now, I understand that investing your home equity can be a good way to grow your wealth. But to squander it…it’s unimaginable to me, that people would borrow against their homes and blow the money, as if it came from the sky. But according to the Times of New York, that’s exactly what’s been happening. Fortunately, I wasn’t in the position to make a decision like that, but I hope I would have made the right decision.