Tuesday, March 3, 2009

Why 2009 is a Great Year to Buy Real Estate

We all know the real estate market has recently had its fair share of ups and downs. The sub-prime loan disaster has hit real estate hard, but there's good news: A recovery is around the corner.

It's predicted by economic analysts that 2009 will be a great year to buy real estate. In spite of this economic disaster the real estate market goes in cycles. Economists have been observing it for decades. Ever 3-5 years the market peaks, and then drops. After a few years, it's ready to roll again.

Of course, cycles change and we can't base everything on past observations. Just look at the economy in the last few months. Things are starting to turn for the better. Recent months have seen growing consumer confidence and a drop in prices of oil and other daily goods.

Right now, the government is trying to stimulate the economy. This means that interest rates are as low as they might be for years. Another bit of good news is that housing prices are low right now. These changes are just starting to take effect, so it is likely that the middle and later part of 2009 will be an even better time to buy real estate.

The trick to buying real estate and getting a great deal in '09 is that you really have to qualify for the loan. What got us into this whole mess in the first place were bad loans and too much government de-regulation. From now on, you'll have to really be economically viable, meaning
you have a job and a steady work history.It also means you have your credit and finances together.

Despite the recent negativity, I am more than positive that this year will be a great one for buying and selling real estate.