Whether you dream of buying a brand new home from a builder or an existing home from a homeowner, this is a powerful buyer's market. As the residential real estate market continues to weaken, the inventory of unsold property expands. And the absence of demand, coupled with an overabundant supply, is causing sellers to pull out the stops in an effort to encourage home purchases.

Weak market equals buyer opportunities

Adjustable rate, interest-only, and other mortgage loans that become expensive when mortgage rates rise are contributing to the pressure to sell, as homeowners face monthly payments that they can no longer manage. But fixed-rate mortgage quotes remain attractive, and offer predictable and affordable options for those considering buying a home.

Meanwhile, new homebuilders are enticing buyers with discounts, upgrades, and giveaways. This is not only good news for people shopping for a new home, but also bodes well for those looking at older houses. When new home sellers attract the attention of buyers, sellers of existing homes need to up the ante and offer their own perks and incentives. Potential buyers in the middle of this tug-o-war have tremendous leverage, which translates into ever-attractive deals at the closing table.

The median price of new construction in 2006 has dropped about 10 percent since last year, and builders are still experiencing twice as many cancellations than they saw in 2005. Cancellations of existing home purchases are also rising, according to the National Association of Realtors. To keep deals from falling apart, sellers are offering all sorts of bonuses, from free vacations and cases of rare wine to assistance with buyers' closing costs. Plus, they're more inclined to accept lower offers, rather than hold out for a better price that they may never get.

Carpe Diem!

If interest rates stabilize, as many economists expect, the buyer's market will quickly end. Current conditions are ideal for buyers; but they won't last forever. This fact makes the present moment an ideal time to get a good mortgage rate and buy the home of your dreams. Remember Hamlet's quote when considering purchasing a home in the city or hamlet of your choice: "Readiness is all!"