Much has been said lately about the housing bubble that has burst in the United States. Remember when not too long ago, houses suddenly skyrocketed in price?

In coveted areas, houses that were once difficult to give away suddenly became attractive properties, inciting bidding wars. When a situation like this arises, when there are not enough houses for a period of six months or more to compete with public demand, in real estate it is known as a seller’s market.

Although the industry varies in different areas, it seems that the tides could be turning and buyers’ markets are finally emerging again. A buyer’s market is the exact opposite of a seller’s. It is when there is a surplus of houses for sale, which will work in your favor if you are buying a new house.

A housing surplus means more options at lower prices and eases the buyer’s pressure to rush through such an important purchase. Homes tend to stay available longer, prompting sellers and agents to gradually lower the price to attract buyers. Although it is an ideal situation for those looking to buy, sellers, especially those looking to get rid of the property quickly, can lose significant amounts of their investment.

Changes in buying patterns are due to a variety of circumstances. Changes in the local economy, natural disasters, and sheer luck will affect the state of the local housing industry. This makes real estate a volatile environment. One day homes for sale will be gathering dust, the next they can be inundated with offers.

So while the buyer’s market is initially a blessing, it can soon turn into a nightmare if you’re not careful and don’t make the right decisions in your home search.

When buying a home, regardless of current trends, make a budget and stick to it. Plus, this will be the place you go home to every day, so while you have to be flexible and make some compromises, know which features are absolutely necessary for you.

As you start looking for a home on the buyer’s market, you’ll probably have more options and free time to search, but if you find the home of your dreams, you better not hesitate to make an offer.

Waiting for further price cuts is often not a safe bet, as local sales trends can change quickly and a good deal, regardless of real estate trends, is a good deal. No doubt other people will feel the same way and could buy your dream home before you know it.

When you shop at a buyer’s market, use the tools available to you. The Internet and word of mouth can help you in your search for the perfect home, but an experienced real estate agent is your most valuable resource.

Remember that real estate is a haggling business. You are not expected to pay the sticker price. In a buyer’s market, there is always room to bargain. The sooner you make an offer, the sooner the seller will be willing to lower the price.

No matter how favorable the market is for you, the only way to capitalize on it is to research and use a local real estate agent.