A NORMAL HOUSING MARKET IN 2008? That is the question on everyones mind these days "homesellers and buyers" alike.  To listen to the news you would think  the housing market nationwide is imploding.  Declining home prices,  people losing their homes and lenders going out of business.  While this is happening in many parts of the country other parts while affected are still building and selling homes. Charleston, SC is one such place.  It is true that there is an excess inventory of existing and new homes on the market but this excess is a home buyers dream come true. Home builders and existing home owners alike are giving incentives ranging from reducing the price of the home to closing cost assistance.  However, many home buyers are still sitting the market out to see what is going to happen over the next few months. As a result there is a pent up demand for housing that is building which bodes good news for homeowners looking to sell their homes in the next 4-6 months. Charleston, SC is also becoming a retirement mecca for baby boomers looking to retire. 

According to housing forecasters they see the market of new and existing homes sales bottoming out later this year. The National Association Of Realtors seems to be in agreement with this prediction with prices starting to rise as the year progresses and buyers start coming back into the market.

The new home sector nationwide still has an ongoing glut of inventory on the market. As a result they are heavily discounting prices in some parts of the country. Some home builders are exiting some markets with one even mothballing homes in a new subdivision in Ca. until the market improves.

On the lending front some lenders have been forced to close their doors while others have been bought out by lenders who are in a stronger position to weather the market.  The lending underwriters have tightened their lending standards which has resulted in a smaller pool of home buyers as those with weaker credit scores have been forced to put off their home purchase until their credit history improves. 

 However, lenders and the big three credit reporting agencies are transitioning over to a new credit scoring system over the next 12 months that may help potential home buyers.  Things that were counted against you in the past may not be counted under the new system. The end result is a more accurate picture of a borrowers credit worthiness. It is still important to remember that the better your credit score the better terms you will get on your financing. It is highly recommended that potential homeowners continue to pay bills on time and monitor your credit score while the new system is being put in place. All in all their still seems to be plenty of money available for those who qualify.