Clark Howard says market ripe for “certain” type of buyer

If you are looking to buy your first home, upgrade or purchase rental property now is the time to do so. Selling your home…not so much. Clark Howard offered this advice and more on “The Clark Howard Show” on Thursday, May 21.

“Things can’t stabilize until we go through all these foreclosures,” said Howard, adding that we wouldn’t be see so many foreclosures if there were a market for these homes. “New buyers and investors are getting deals and it creates an artificial floor in the market.”

Howard discussed the future of market place, stating he sees a full recovery sometime between the end of this year and 2012. He expects mortgage rates to remain low over the coming months, with a possibly spike coming after Labor Day.

“The root of problem is supply and demand,” he said. “Even though we have depressed stats on home building, the good news is that the population is up, and over time household formation will soak up everything and we will cycle through and the marketplace will heal.”

Clark added that according to a recent poll by HomeGain, an online source for real estate information, 60 percent of houses on the market are currently overpriced. “When you put a house on the market, you want it to sell,” he said. He mentioned that research has shown that individuals that overprice their home typically sell their homes for less and have a much longer waiting process.

He also urged the audience to be wary of Hero agents.” A lot of agents make the mistake of overpricing. Be realistic about the price you set. Don’t forget you are competing against foreclosures, even though they are wounded ducks.”