DOWNTURN

This is the National Association of Realtors' chief economist, as it appeared on MSN Real Estate:

"We are now in a solid buyer's market," says David Lereah, the chief economist for the National Association of Realtors (NAR). "It has been a seller's market for many years, but now we are seeing people across the country making deals and bringing prices down."
A loss of confidence on the part of real estate investors triggered the psychological switch, he says. "What happened was, investors pulled out in droves, and the housing markets went dead," Lereah says. "When the investors stopped buying, regular buyers got scared."
That fear drove many house hunters to the sidelines, thinking that housing prices would continue to fall and waiting to see what would happen.
"At the same time, sellers refused to bring their prices down, and so buyers had no real incentive to get back in the market," Lereah says. "With everybody sitting on the sidelines, the market came to a standstill."
Sellers conceding. With a dearth of buyers, sellers eventually realized they would have to make concessions on their sale prices.
"Now they are making deals," Lereah says.
If the downturn was simply a product of a short-term panic, things would likely be back to normal by now. But Mickey Levy, the chief economist for the Bank of America, points out that the market is also suffering from an oversupply of homes created by an overzealous home-builder community.
"While demand is picking up, there is still that large supply overhang," he says. "And while the numbers are starting to come up for sales, prices still have a bit to drift before they start rebounding."

Well, Tyler Texas Real Estate has a little different approach here. In some sectors of the market there is, indeed, a softening. But overall there is still great strength in our area. Upgrades and new home sales in around Tyler, Texas have provided a wonderful opportunity for buyers of older homes and entry level homes. It's a great time to be a realtor!