How's real estate these days?

I get that question a lot, everywhere I go. People are just naturally interested in how the real estate market is doing. Many are interested because they are about ready to retire and would like to sell and move on with life, maybe in a smaller home. Some are interested because they are ready to buy their first home and want to feel sure that they are getting the best deal or find out if they should wait. Some are just checking to see when their biggest investment might start appreciating again and hopefully regain any lost value.

My answer is the same for all of them - the market is slow, but still moving. People are buying and selling homes. There are fewer people buying right now and it takes a bit longer to sell right now, but it is still happening every day. The lower end of the price spectrum is moving fairly well, with many foreclosed houses falling into that category now. First-time buyers are getting great deals on houses that they otherwise would not have been able to buy for years. Those move-up buyers who aren't tightly associated with the automotive industry are also getting great deals on move-up homes that have dropped in price over the last 12-18 months.

Most sellers have finally come to grips with what has happened to home values and are starting to realize that they will make up most of the loss on the home that they are selling on any new purchase, especially if they are staying in Michigan. The good news is that the rate of decline in value has leveled off and we may be at or close to the bottom of the devaluation adjustment.

After a brief period of confusion and adjustment, the mortgage industry is back making loans and still at great rates. The qualifications are higher now than before and that's likely a good thing, since it was the lack of qualifying buyers that got us into the mortgage mess to begin with.

If you want/need to buy a home, and you meet a set of very reasonable mortgage criteria; go for it. It's a good time to buy and prices may not get a whole lot better if you wait. If you want/need to sell your home, price it right and it will sell. Then you can become a buyer and get a great deal yourself.

So, how's real estate these days? It's OK. It's not good or bad, just different. We've all had to adapt to the new market and the new reality about home values. Those who have been able to come to grips with things as they are now are moving on with life. Those who can't yet let go of the past are stuck figuratively and literally. They are not buying or selling, just watching things happen and wishing for a return to the "good old days" of 2-3 years ago. Ain't gonna happen, folks. Get over it and get on with life. The reset button has been pushed and we all have to learn to live in the new game that has started.