The housing market declined substantially in the last quarter of 2007. The average selling price of a single family home was down by 8.4 per cent. Analysts are predicting a weaker market for real estate in most areas of the country for at least the first half of this year also. Many sellers will have to settle for a lower price if they plan to sell a house in 2008.

Dream houses may be easier to afford for many people now. The interest rates on mortgages are still very low by conventional standards, and the recent cuts in the prime rate by the federal reserve board may help people buy better housing at a lower overall cost. Many new home buyers are getting the best of both worlds if they buy a house now. The waters have not been this good for a long time.

The average buyer in the housing market will be able to buy more house for the money if this trend continues. For example, if a house previously was priced at $210,000, the same property would sell for $181,860 if the housing market were to decline by another 5 per cent in the coming months.

If a sharp buyer was to keep posted on the many foreclosures that are coming up, they would be in a good position to make an excellent deal on a good property. Foreclosures have been on the rise during this period of market unrest. Now is a good time to be on the lookout for distressed properties to buy.

The options for a person looking to buy a house have not been this good for quite a while. This combination of factors makes it very lucrative for the purchase of a new home. Many mortgage companies will be competing fiercely for the home buyer's business in 2008. Be aware that every 1/4 point less that you pay on your mortgage does make a difference on the payment, and the overall cost of your new home. For a complete analysis, you must consult a mortgage calculator or an amortization table.

With new housing starts down also, lenders will be looking to fill the gap with loans on existing homes. It is a good idea to shop around for the best interest rate and terms on a mortgage in the near future because the market will be dynamic and the conditions will change daily. In this case, the early bird will be the one catching the best worm.

Keep a sharp eye for the mortgage deal that you want. With a house to sell for much less, and lower interest rates, the opportunities can come quickly. Stay focused on your goal of home ownership. This time may be the best yet for you to get the house you really want.