When you should expect to get a bargain in any market is buying when market conditions are better for the buyers rather than the sellers.When the buyers have the upper hand in negotiations , the market is said to be a buyers market.They can afford to wait until the price is right. When considering buying a home look for these indicators that it’s a buyers market before you begin looking.
Concentrate on for sale signs especially when the brokers name changes every few months. In a not so good market when whole neighborhoods go up for sale because people are forced to move for economic reasons.
Keep an eye on the stories in the newspaper about layoffs and indications of the shutting down of local businesses.
Look out for reports of high mortgage foreclosure rates. A sign that is seen when there is a rise in foreclosures is the delinquency rate of loans. Delinquency rate information for most metropolitan areas can be purchased from the Mortgage Bankers Association at www.mbaa.com
You will begin to notice price mark downs all over. You will notice price reduction in advertisements. In a depressed market over pricing will be common.
You will notice that agents will try every tactic there is available to bring in business. In a slow market you will notice alto of open houses.
You will notice unfavorable terms on mortgage loans .When the market is slow the collateral value of real property less. When they are faced with foreclosures, lenders are not too happy making new loans .They only make the ones with the lowest risk, which means those with low loan to value ratios, high discount points and tough qualify ting criteria