When the housing market slows down, buyers often wait in the wings to wait for a sign that the market has recovered. The problem is the only way to really know when the market has changed is after it already has.
You can't time the market.
A slow market is perceived as an opportunity by some buyers, It often times takes longer for listings to sell and inventory of unsold homes tends to grow. This gives buyers more choice. Typically a buyer will find that when submitting an offer they are not competing with other buyers and are able to negotiate a better deal.
You will want to be careful about what you buy and how you finance the purchase.
A risk of buying in a slow market is that the value of what you buy might drop before it rises. Or prices could stay flat for a period of time which means you won't build equity unless you pay down the principal on the mortgage. If you need to move during a time when prices are soft you may not be able to sell for the price you purchased the home at. To help mitigate this risk, don't buy for the short term. Give careful consideration to the type of mortgage you obtain and avoid riskier types of loans.
A benefit of buying in a soft market is that you have the opportunity to buy at a reasonable price, without having to compete with other buyers. If you are purchasing a home to live in and are planning for the long term benefit of home ownership, now is a good time to look.
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