I am certain that, like us, you are hearing a great deal of information - some of it contradictory, regarding the state of the real estate market. Based on what we are seeing in the field, the market is alive and well! So why all the gloom and doom? News programming audience patronage, that's why. The death of the upward spiralling housing market is a news story that touches virtually everyone and is an instant attention getter - it helps sell advertising - the bottom line. Think airline accidents....Although the media spends a tremendous amount of time covering airline accidents, your chances of being involved in one are about the same as winning the lottery or being hit by lighting. In contrast, one out of every 88 people will reach the end of their lives in a car accident (not to mention the millions injured every year in cars). Does the media cover car accidents proportionately? Of course not. There, in front of your eyes, is a huge distortion provided by news outlets!
Getting back to real estate, yes - the market has slowed down, but, according to some seasoned observers, is now at a more normal level - not a depressed level as some would have you believe. As in the stock market, most people should view real estate in terms of long-term investment. A home is primarily a place to live. If it appreciates (and it will over the long term), so much the better. Normally, you can expect about a 5% per year increase value. This can at least compensate for the interest (after tax) you pay on a typical mortgage.
The good news is that, nationwide, home prices actually increased for resales by about 2.2%. The number of existing home sale did drop a bit, however. You can expect the time required to sell your home to be longer now due to the larger number of homes on the market.
Foreclosures have increased for a variety of reasons, and some will lead you to believe it is a ticking time bomb. However, nothing is ever as bad as it seems it will be. For example, right now, some states are considering earmarking money to aid people in foreclosure - helping not only those people but everyone involved in housng - mortgage companies, their stockholders, and all home owners. It may be an extremely wise use of taxpayer money given the amount of general good it would do.
So, stay tuned! Please temper what you hear in the media with a large grain of salt! Get into real estate for the future and don't be deterred by temporary hick-ups.