The Crazy Housing Market

So I noticed the other day on CNN that some realtor association officially declared the U.S. housing market to have changed to "A Buyers Market." I guess that is a good thing, a few years ago when I bought my house, houses would only be listed for a day or two before they were under contract! Of course that just drove up the prices becuase people would have to outbid competitors, and for some unknown reason housing appraisals always seemed to match the offered price. I think the only good thing was the low interest rates. I couldn't even afford to buy a house now! Now that it is a buyers market houses are on the market for longer because buyers have more options. I swear we would get several ads a month in the mail from several fly-by-the-night mortgage company who would be willing to buy our house a lower rate (they would pay all closing costs though), but where are those companies now? CNN also had an article today that compared the housing markets throughout the country. The most inflated place to live in America? You guessed it good old sunny CA, Santa Barbara to be exact. Average home price is something like $567,300.00 and they estimate that it is 86% overpriced from what it should be! It should be $308,000. Still too rich for my blood. Note to self-- NEVER MOVE TO CA! They had several over priced housing markets. Texas on the otherhand had some undervalued housing markets, but who would really want to go move to the land of desolation.

So what does this mean to me as a home owner? Does the value of my home drop becuase I am now involved in a buyers market if I want to sell? I read that some condo constuction sites will be rented as apartments rather than as condos becuase of slower building. Will this lower rent in metropolitan areas? It will be interesting to see what happens.