We all know that the housing market has been struggling for quite some time. Certain areas have been hit harder than others, but just like with other markets in the economy, everyone is feeling the impact of the housing market as it struggles.

Last Wednesday, February 24, 2010, the Commerce Department said that new home sales have dropped 11.2 percent in January, the lowest level on record for nearly a half a century. This came as a big shock and surprise to many economists who were expecting a five percent increase over December’s sales.  Some say that this major drop was partly due to winter weather conditions, but that the housing market has been struggling for several months despite government support and assistance.

January’s weaknesses were seen in all regions except the Midwest which saw a 2.1 percent increase. Government mortgage programs have tried to keep rates down by using the Federal Reserve to buy $1.25 trillion in back mortgage securities but that program is due to end by March 31, 2010. Other tax credits and incentives are also set to end in April.

Many people do not believe that the housing market will go under, but it will take longer to reach a good point of recovery. This means that real estate agents need to do everything they can to sell, sell, sell, and sellers need to hang in there. We all need to keep our fingers crossed, do the best we can, and hope for the very best.

Home prices are down. If you have lived in your home for several years, you might have a hard time getting back what you paid for the property originally. Fortunately, there are some things that you can do to improve the selling price of your property.

Start by cleaning. It sounds basic, but it can make a huge difference. Dust, scrub, wash the windows. Hire someone to come in and deep clean the carpets, and make sure the floors are mopped and waxed, if necessary. Don’t forget to organize cabinets and shelves, and to clear out any clutter and personal items (pictures, refrigerator magnets, ect.).

You also need to clean up the outside of your home. This is a little harder in the winter, but it still needs to be done. Shovel all walkways and clear off the deck. Knock down large icicles. Make sure any outbuildings (garage or storage sheds) are cleaned out and organized. If you have pets, don’t forget to clean up their droppings. Buyers don’t want to see, or step in, the remainder of what Fido had for breakfast. Remember that the outside of the home is the first thing the buyer will see. Make sure their first impression is a good one.

Once everything is clean, it is time to start staging. If cleaning makes your property presentable, staging is what gives it the finishing “wow factor” touch. There are two main parts to staging. The first is that every room has a purpose, and only one purpose. Move the office out of your bedroom, for example. Clear out “storage” rooms and give them a purpose. Put the office in there, or set up a den or spare bedroom. Your goal is to make buyers feel like they could make the property their own.

The second part of staging is that the home has to look neutral. Paint the walls a soft, neutral color, such as light green or an off-white. Take down heavy drapes and put up something lighter that lets in a lot of natural sunlight.

You also need to go through the home and make note of any repairs. Leaky faucet? Loose floorboard? Fix it. Taking care of these tiny problems will make your home look well-cared for. That’s going to assure the buyer that he or she is getting a great property, which can up their offer price.

A buyer will only pay what they think your home is worth. It is up to you to impress them, as soon as they pull up to the property and then again as soon as they step foot inside your home. Prove to a buyer that your home is a great buy, and they’re more likely to pay what the home is worth.

With foreclosures up, sale prices down, and new homes sitting empty, it’s hard to look back on 2009 as a great year in real estate. The market is way below where it should be, and it’s taking a lot of work to build things back up. There’s been more bad news than good.

Not everything in real estate was bad this year, though. With all of the negative press the real estate world has been getting, here’s a little good news to balance things out a bit. Consider this the 2009 Real Estate Winner’s Circle, the people who actually won the real estate game this year.

First time homebuyers were the big winners in 2009. Not only have interest rates been at a ridiculously low level most of the year, prices have also been low. Add to that the first time home buyer tax credit, and you have a formula for a lot of first time buyers making out very well in real estate this year. There were a lot of homes available, and first time buyers alone were able to put a huge dent in the available inventory.

Investors also were in a position to do really well in 2009. Lower prices and lower interest rates made it easy for investors to scoop up a lot of homes. If investors had cash available, they were able to purchase unfinished developments, foreclosed homes and other troubled properties for as much as 25% off the price they would have paid five years ago.

This was a great year to be a renter. There were more apartments available, and fewer interested renters, so those who moved into a new apartment during the last year could have saved a lot on their monthly rent payments. They also avoided the real estate mess, for the most part. Also, with the home buyer incentive expanded and extended into 2010, these renters are in a great position to buy a home in the coming year.

Home owners who have owned their home long enough to build up equity were also doing well this year, despite the drop in home prices. Their homes may have dropped in value, but the mortgages on those homes didn’t go upside down. They were protected. Similarly, owners in areas where home values didn’t drop, such as in many areas of the central US, weren’t affected by the recession the same way those whose homes dropped several thousand dollars in value were.

The turmoil in real estate during the year has taught us some hard lessons. We need to think carefully about our finances before buying a home, and we need to make sure we have a substantial savings set aside for a rainy day, to cover housing and other expenses in the case of a job loss or other financial emergency. Banks have been forced to change their policies, and consumers are much more aware of how the real estate market works.

The current state of the real estate market may be bleak, but there have been some good things to come out of it. As we head into 2010, it will be interesting to watch as the housing market continues to pull itself out of the hole and come back stronger than ever.

When you get ready to sell your home, there are many things to consider. Some of these things may include: the market, pricing, open houses, marketing, and negotiating with a possible buyer among having to get ready for your own move. It is hard to remember everything and you just want to be able to sell your home for a reasonable price and then move on to your own bright new future. Here are some home selling mistakes to avoid helping make the process a little easier for you and that possible new buyer.

Talk with and trust your real estate agent
Make sure you talk with your agent about what you want and need and make sure you trust them to help you negotiate for you and help you sell your home. If you do not trust your agent, it can make selling your home even harder.

Know the Market
If it is a seller’s market, you may have a good chance at selling your home fast, if it is not, you may have your home on the market for quite awhile. Ask your agent for further advice on how to help you to sell in any market.

Consider your asking price
If a home is priced too high, this can be one of the biggest mistakes for a seller. This leads to no buyers, having the house on the market longer and more. Consider the market and other factors such as possible buyer’s wants before pricing your home.

Make sure your home is good condition
Before selling a home, it is important to make sure the home is ready to sell. This means making any needed repairs, organizing the layout of your home, as well as cleaning and putting away personal information. Homes in bad conditions will not be attractive to possible buyers and will make for a hard sell.

Invest in good marketing
Bad marketing techniques may include: poorly taken photos, not enough open house times, not enough descriptions, not listed enough, and more. Bad marketing leads to homes staying on the market too long.

Avoiding these big selling mistakes can help you and a buyer to reach an agreement faster and sell your home for a reasonable price. That way everyone is happy and you can move on to your new future with no worries.