As many of you are aware, the prices of homes have been dramatically decreasing month after month. In recent years, the foreclosure homes have been the homes that were the anomaly and their low prices were basically discarded by the appraisers due to the distress situation where the bank just wanted to dump the home. Freddie Mac and Fannie Mae were never designed to be "Sellers of Real Estate". It is a sign of the economic times that bank are in the real estate market. Clearly, this is a far cry from the insuring loan business.

Having said this, Freddie Mac and Fannie Mae's losses are clearly the gain of the general public. In my opinion, there has never been a better time to buy a home for pennies on the dollar.

As a Broker Associate who has worked with Freddie Mac and Fannie Mae, the deals that are out there are unbelievable! I bought my home in 2005 and the value of my home is now approximately $100,000 less than paid for it.

I can afford my mortgage payment and therefore feel a moral obligation to pay my monthly payment even though my home is worth less than I paid for it.

Based on my experience, I do not foresee an increase in the price of homes for at least 2-3 years. Even when the prices go up, I expect a 3 to 5 percent increase per year from the current market value.

If you purchased your home many years ago and are considering selling your home, find an agent who will realistically price your home based on the most recent sales. If you bought your home over the past 5-7 years, you may need to wait to sell your home because, most likely, your home is worth less that you paid for it.

The west coast of Florida saw hyper inflated sales prices and the market has corrected itself. I am positive that this is following a trend that has occurred time and time again in the real estate market and we will eventually see prices begin to rise again. When that will happen is not a certainty, but it will happen.

Until it does, it is best to make an informed decision when selling or buying a home. Just like the stock market, you just never know what tomorrow will bring.

Until next time........