Every business industry is cyclical.  The local real estate market is no exception.

Prices are great for those who need a home and for investors who want to build their portfolios with rental properties.  Money is readily available to creditworthy people, and there are a lot of you out there.  Right now the market is simply adjusting to normal supply-and-demand pressures.

Buyers have been holding back on making a purchasing decision, due to the uncertainty of the future.  The National Association of Realtors (NAR) had plenty of positive news for Realtors at last month’s conference.  Buyers should focus on what the local experts are saying about the local market and not the national media view. Additionally, the Federal Government has taken steps to tighten lending guidelines, to allow borrowers not only to just obtain but to also sustain homeownership.1

Realtors and Mortgage Professionals should consider it their duty to educate the borrower, working ethically and responsibly, and assisting in housing counseling to ensure that prospective buyers make the right choices in order to preserve their homes.

In the next 20 years, the Hispanic population is expected to make up 40% of all first-time homebuyers.  What will continue to help many Hispanic families buy their first home are:  higher levels of income and education, stimulated by a strong work ethic and aspirations for a better life.  Homeownership equity, accounts for 63% of Hispanic household wealth- the highest of any group.2  From the very beginning, borrowers must be encouraged and taught to fully understand the terms of their loans.

2008 will be a year of opportunity representing the best window that buyers will have to find excellent deals with excellent financing.  Most importantly, remember that the purchase of a home is the best way to create long term wealth for your family.