Those seeking a mortgage fast to purchase now may need to consider what will happen to the real estate market upon a rebound.
People have been feeling stuck in their homes, unable to move for many years now. As prices fell, more and more homes went underwater. (Click here for more information on underwater mortgages) Now there is huge amount of Americans that want to move the second they can sell their home to cover their mortgage.
What does this mean for the value of my future or current home?
Once prices rise, all of the people on the fence will likely put their home on the market at the same time. Also, banks who have been waiting for a recovery will be eager to put inventory on the market too. This will result in an over supply of homes on the market causing prices to fall again. Sellers unable to sell quickly will end up in a market flooded with homes and eventually many will pull their homes back off the market due to another price decline.
Those looking to purchase during this time of price increase then decrease will need to consider pulling the trigger quickly on any home they want to buy at the bottom. Prices will likely increase after this dip, shaking out those willing to sell at lower prices and leaving those only willing to sell at higher prices. However, be careful… There could be multiple spikes and dips due to the amount of inventory on the market and people eager to sell their home at a price that will pay off their current mortgage.