After the the economic collapse in the fall, industry analysts saw a sharp drop in real estate values by 18.2%. Many individuals have seen their real estate values go down sharply to under the level that they originally purchased the house for. This movement is disturbing for sellers, but presents home buyers with a chance to pick a house at a low price.

The plummeting real estate values mean bad news for the economy. Homeowners who once regarded their house as a safe investment haven are now watching their homes being valued for much less than what they used to be during the housing boom. Numerous homeowners are realizing that their house is worth less now than when they bought it in the first place.

As property values have spiraled down, home starts have crashed too. The availability of foreclosed homes has flooded the market with available homes that are affordable as banks and other lenders are glad to let these homes go for substantially less than what they are worth. Buyers who are in the market for a new home are all of a sudden confronted with cheap options that they did not have before.

With prices spiraling down, affordability has become a factor. Many people who can make a significant down payment and have good credit are now in the position to buy a home and are taking advantage of the current circumstances to pick up a home for a low price. While banks might be drying up, there are enough other institutions and government entities that can get qualified buyers a loan.

Homeowners who are forced by financial circumstances to sell their home are realizing that it is a buyer’s market. They also realize that they may not get their asking price, but substantially below that. The current housing market is obviously not a good time to sell, unless it’s forced by financial hardship.

The fact that real estate values are going down dramatically is not good for the overall economy nor pleasant for homeowners. While low housing values are not a good omen for the overall economy, they do present an opportunity for individuals who can actually buy a home in these times. With so many houses being for sale because of foreclosure, numerous homeowners who want to sell their homes are finding themselves in competition with with bargain priced homes put up for foreclosure.