A recently released Standards & Poor's housing index reported that prices of US homes for sale fell for the 17th consecutive month. On the S & P's 20 city analysis homes for sale showed the greatest steady declines in Boston, Detroit, Phoenix, San Diego and Washington D.C. While analysts are watching the prices of these homes for sale closely, experts agree that many buyers are benefiting from the situation.

The Federal Reserve's recent decision to keep the prime interest rate at 8.25%, and the benchmark interest rate at 5.25%, is good news for a lot of people looking at homes for sale. Realtors report that sellers drop their prices significantly when homes for sale saturate the market. Current buyers in most, but not all, of the nation's cities are benefiting from sellers desperate to sell their homes for sale due to relocation or finances.

Who Can Benefit from Lower Priced Homes For Sale?

While a declining housing market is not considered good for the economy as a whole, first time home buyers, investment buyers, and those with good credit may benefit from buying homes for sale in this climate. With the combination of steady and low interest rates, and dropping prices of homes for sale, buying can be a wise move.

Of course, there are losers in this situation too. In addition to the owners of homes for sale that just won't budge, potential loaners with bad credit find themselves stuck. Stricter guidelines to protect low income borrowers from unscrupulous lenders make getting low interest loans with bad credit more difficult than in the past. While some view this as bed news for those looking at homes for sale, many industry experts view it as a way of protecting consumers from themselves.

Foreclosed homes for sale are often the result of buyers owing a higher monthly payment than they can really afford. And for those who are serious about home ownership, there are ways to improve poor credit over time.

Long Term Trends in Homes for Sale

In the long-term, a home is still one of the most stable investments most people will ever make. The National Association of Realtors predicts that the second half of 2007 will see a gradual increase in the prices of US homes for sale. The speed and impact of that is yet to be seen.

As with any market correction or slump, there are those who benefit while others suffer. It's the nature of a market economy. Whether first time home buyers will take advantage of the current homes for sale situation, or be forced to wait and repair credit, will be determined on a case-by-case basis. The best advice for most is to keep your credit and finances in good shape, so that when a homes for sale opportunity presents itself you will be able to jump on it.