The pain of America's housing bust varies enormously by region. Hardest hit have been the “bubble states”—California, Nevada and Florida, as well as parts of the industrial Midwest.

Buffett Real Estate CEO Sees Housing Comeback

The battered housing market has steadied and is ready to bounce back off an inevitable pullback from its boom times in the earlier part of the decade, said Ron Peltier, the CEO at Warren Buffett's Homeservices of America real estate company.

"I think the real truth is the market has been in a phase of correction," Peltier said.

"We are seeing some light at the end of the tunnel." At the same time, Peltier gave a candid analysis of what led to the housing meltdown in the first place.

He said the market sprinted ahead of itself price-wise, while unscrupulous lenders and appraisers compounded the industry's problems by putting too many people in houses they couldn't afford.

As for how things shape up going forward, Peltier said market has returned to its pre-boom times, with home sales tracking at about 5 million annually.

"I think that's a normalized market and I think that's a sustainable level," he said.

But he divides the market into two parts: the primary market of discretionary sellers, and the distressed market, which includes some of the areas that saw the meteoric rise and now are suffering the consequences of excess.

The Media is the primary cause for the current slowdown for new home sales in the Texas Coast real estate market.

Media stories have an immediate and significant impact on buyer and seller behavior.

We all know buying a home is the most expensive purchase most people will make and one fraught with uncertainty and complexity.

Clearly from the statistics reported by the Government and local real estate expert analysis, you can see that the Texas market fundamentals are as strong as ever and lead the nation.

It's the bad news in California and Florida that dominates the media stories about real estate - and they fail to mention that Texas is not in the distress those other states are in.

The impact on new second home purchases on the Texas Coast, is mostly a matter of buyer hesitancy from the impact of that negative press.

Finding Opportunities

New home sales fell 8.5% in March, according to the Commerce Department. The vacancy rate for homes is at 2.9%, the highest level recorded since the Census Bureau started keeping track in 1956. Over 18 million U.S. homes were empty in this year’s first quarter. Sound like bad news?

Not everybody thinks so. There are those who believe that the bottom of the real estate market is either here, or will be here soon.

The optimists believe that the mismatch between inventories which is high, poor demand and over priced homes will eventually be resolved and the real estate market will return to equilibrium.

The pessimists believe that the bad market from March 2007 to March 2008 will continue well into the future, fueled by factors like baby boomers fleeing the suburbs for low tax sunbelt retirements.

In the meantime there are deals to be had. A number of developers are offering incentives, which include: guaranteed buy-backs, help selling your existing home, special prices, reduced interest rates, and lots of “free-be's” (landscaping, granite countertops, finished basements, etc.).

So there are plenty of deals to be had.

As always, cash buyers who are ready to sign a
contract will get a better deal than a window shopping customer who needs a mortgage.

Of course there is always the difference between a come-on and real deal. So if you are tempted by an incentive, analyze it carefully to find out its real benefit.

Go out and visit the property and ask questions of the neighbors and HOA (Home Owners Association).

The bold and the brave can easily find deals - if they do their due diligence and are willing to be patient.

Beware of new developments where the promised amenities are not in yet, they may never be.