How To Get Home

Witht the recent slowdown in the housing market, several nationwide homebuilders having been feeling the hurt. Make no mistake about it, residential home construction is no easy business. In 2006, sales fell 17% and builders are still struggling with current inventory levels.

Some business leaders find it difficult to call it like it is. D.R. Horton’s CEO does not suffer from such a problem.

“I don’t want to be too sophisticated here, but 2007 is going to suck, all 12 months of the calendar year,” D.R. Horton Chief Executive Officer Donald Tomnitz said at a Citigroup Inc. conference in New York. “Our future is not as bright as what we would like it to be.”

I bring this up as an opportunity. I am not suggesting that we are at the bottom of the housing market. Trying to time a bottom is nearly impossible. Focus on the important things when trying to decide on buying a new home.

1. Can we afford it? Just because it is on sale does not mean you should buy it. Make sure you are comfortable with the payment.

2. Is it a good value? Do your homework here and have your Realtor help you understand the market data.

3. Does it meet our needs? No sense buying a house you will grow out of in 6 months. Moving costs money and is not a ton of fun.

Most people agree that home (new construction and resales) inventory levels are up, sellers are very motivated, and mortgage rates are down. So what we have here is lots of choices, lower prices, and great financing terms. Again, I do not want to sound like the market cheerleader, but it a great combination of market forces that are coming together and home buyers will benefit.

From the D.R. Horton website - You can get a great deal since builders and resellers are adjusting their prices for the new marketplace.

A motivated seller is a good thing.