We’ll be seeing more and more headlines in the next few weeks around recession concerns. Funny how this seems to happen quite often just before an election. If I was a conspiracy nut, I’d be having a field day.

The concerns about inflation, a recession and the media play/hype/exposure that wll result will actually improve things for home buyers. All of these factors will most likely result in further downward pressures on housing prices and an increasing slowdown in home sales.

It should be interesting to watch the local trends for the next few weeks.

For the home buyer with secure employment and good credit, this will be a fantastic time to make a deal of a lifetime on a home – even first-time buyers (maybe especially first-time buyers).

Consider these factors:

• Interest rates will drop further as the Fed tries to stimulate the economy
• Rents are on the rise (see last weeks Sunday paper)
• Home Prices are falling
• First-time buyer programs have money, but the number of applicants is falling

While the pessimists moan and groan, the optimists will be able to make deals that lead to future laments of – woulda, coulda, shoulda – from those that want a risk free life.

There’s little risk in obtaining a mortgage you can afford. Base your mortgage on a worse case scenario of what you can afford.

Move up buyers feeling stuck by current market conditions should concentrate on the buy-end savings and not the sell-end price.