Countrywide thinks that we’re headed into a recession. While others (especially political leaders) shy away from the dreaded "R" word, the nation’s biggest lender put it all out there. And its not looking good for the housing market, according to Bloomberg:

“We’ve still got a problem,” said Michael Binger, a fund
manager at Thrivent Financial for Lutherans in Minneapolis, which
manages $70 billion. “We’re still in a weak housing market, and
that’s going to persist probably through the end of they year and
probably into next year.”

But all is not lost. Places like the Sedona real estate market are illustrating something interesting: it’s turning into a buyers’ market. And while you may need more documentation and better credit to get a home mortgage, chances are that you will have a better time of dictating terms to the seller.

This actually worked for us as we negotiated for our new construction home here in northern Utah. We got free central air installed, an extra closet built in, a discount on finishing the basement and closing costs. Sweet. So don’t be afraid to ask for a little more. As the housing market retreats, you should be able to find better deals.