Is it a good time to be in the real estate market?
As you begin to think about buying a home, you will want to understand the basics of the real estate market. For example, be aware of interest rates and whether they are moving up or down. Low interest rates mean that you are likely to find good financing when you look for a mortgage loan. Spring and early summer are popular times to buy or sell a house because families tend to schedule moves before the fall start-up of school.

Buying in a Seller's Market
Seller's markets are times when houses sell quickly. There are more buyers than sellers, so the seller has the advantage in price and terms. This happens when an area is popular for any number of reasons, such as employment opportunities and good schools.

Buying in a Buyer's Market
In a buyer's market there are more houses for sale than buyers looking for houses. As a buyer, you can benefit when the oversupply of housing drives prices down. Be smart and know why the local economy is down. You'll want to keep your house long enough for the local economy to recover by the time you want to sell your house.

The Multiple Listing Service (MLS), maintained by the real estate industry, lists all the homes in an area that are for sale. MLS tracks the number of days each house is on the market, so ask about the average number of days it takes for a home to sell.

When houses are on the market for an average of a month or more, you are likely in a buyer's market. Another indicator of selling trends is the number of homes selling in certain price ranges. A local real estate agent can give you this information.