Real estate trends are often good indicators of how the economy is doing. They are also good predictors of what will happen in the future. Current real estate trends point to a down market, with record foreclosures, fewer new home starts, and lower prices. What this means for you depends on what your position is.

The recession has brought on a decline in new home starts, which has adversely affected the construction industry. Real estate trends point to this and the fact that contractors who are building homes are building them smaller means that the days of McMansions are gone and more practical housing is being built.

One of the real estate trends that is most interesting to watch is the decline in home prices. This is bad news for current homeowners who have invested in their home and were hoping to reap the benefits of the home once they were ready to sell it.

The decline in home prices has led to a buyers market, and many bargain hunters who can get financing are taking advantage of this trend to buy an affordable home, provided they can get financing and have a substantial down payment.

Real estate trends across the country keep showing a slow down in home sales as well. This is not a great time to have a home on the market because prices have bottomed out. With record layoffs, less people are looking to buy a new home and are staying put or downsizing to rentals. Those that are looking to purchase a home are looking at hurdles in terms of financing. They can expect to put down a much larger down payment than what was required, and their credit scores have to be high.

When reading into these real estate trends, it’s hard to see where there will be a turnaround and prices will become more stable. Everyone is waiting for the stimulus package to kick in and the spring market may be telling as to how long these real estate trends will continue.