Many homeowners are looking at the current real estate market and wondering how much worse the crash will become before it really starts to improve. Given the fact that the real estate market in the last year has been the worst year in several years for sales, it is small wonder that consumers are so worried. Default rates rose significantly while the prices of homes fell sharply. In addition, the rate of home ownership started to drop as more first-time homeowners were frozen out of the market. To make matters worse foreclosures soared dramatically and finance brokerages started to file for bankruptcy.

If you are like many consumers you too may be wondering how much worse it will become. Recent statistics indicate that housing prices will likely drop further this year before they start to improve. One of the reasons for this is the fact that credit is still experiencing difficulties while interest rates have not improved either. One of the largest concerns about the market in the coming months is commercial real estate. Many experts believe that commercial real estate will take up again to soften throughout 2008 including shopping centers, offices and apartment buildings. Slower economic expansion could result in higher rates, thus triggering the continued softening of the commercial real estate market.

Many feel that the relief from the real estate market will not be achieved soon, at least not in the coming months. The inventory of homes currently on the market has continued to grow in the past months. As a result, this inventory will need to be handled before stability can occur for the overall market. According to the U.S. Census Bureau the rate of homes in the United States there were vacant and for sale during the last months of 2007 was higher than it had been since 1965.

It is anticipated that the plea for housing will remain lower, thus impacting housing prices. High risk buyers who would have been able to qualify for subprime loans in the past have now exposed they are locked out of the market, thus unable to provide any immediate relief. Furthermore, even buyers who are able to qualify according to the credit but who do not have a large amount for down payments may also learn it remains hard to become ordinary for finance loans.

While residential markets throughout the United States have been hit hard, Florida seems to be suffering more than many others. Part of the reason for this is the fact that literally thousands of condominiums that were under construction are anticipated to be completed this year. In many cases, deposits have already been placed on these units; but, there is some concern that property value drops and the tightening credit situation will give buyers reason to be worried and perhaps even back out. In the event a large number of buyers back out of those units, this could cause a serious problem with construction loan defaults in this market.

California has also suffered as buyers who struggled to take out risky loans in order to buy homes with soaring property values in the past few years learn they are no longer able to meet their housing payments. In many cases, selling those homes now is hard as property values drop and finance payments rise.

While the news certainly may appear to be grim, there is some silver lining to those dark clouds. It appears that the housing market could well bottom out in 2008. This is really excellent news because the market must bottom out before it can start the climb back to the top.

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Second home sales have been increasing over the last few years with more people becoming second home owners. In 2005 alone, 40 percent of the homes sold were second homes. Demographics, all time low finance rates, and healthy rise in home prices have contributed to this development in the second home market. Besides these, a major factor that has helped augment the buying and selling of second homes is the real estate professional.

The National Association of Realtors conducted research on the profile of second-home owners in 2006. According to the NAR report free ’2006 Profile of Second-Home Owners’, a majority of second home sales transactions are conducted using the services of real estate agents.

The statistics are remarkable; 64 % of trip home buyers bought their home using the services of a real estate agent by the end of 2005 – a marked increase from less than 50 % of trip-home buyers in 2003. Also, 65 % of investment-home buyers bought their home with the help of a real estate agent – an increase from 53 % of pre-2003. In comparison, only 14 % of trip-home buyers and 7 % of investment-home buyers bought frankly from builders from 2003 to 2005.

The growing role of the real estate professional is evident from the subsequent figures:

1. Of trip home sales made, 71 % of them were second homes and 74 % of the sales were made using the services of a real estate agent.

2. Of the investment properties sold, 85 % of them were previously owned and 62 % of the sales were made using the services of a real estate agent.

The use of real estate agents in second home sales transactions different according to the home’ location.

1. Buyers used a real estate agent more frequently while purchasing a trip home located in a suburb/subdivision (56 %) or a rural area (57 %) than for homes in other locations.

2. About 66 % of buyers who bought an investment property in an urban/central city area or in a suburb/subdivision, used the services of a real estate agent more frequently than those who bought a home in other locations.

Real estate professionals take up again to be the first fund of information to second-home buyers (38 % of trip-home buyers and 34 % of investment-home buyers). The real estate professional also plays a major role when second-home owners plot to buy additional properties. If you are thinking of buying a second home or trip home, seek out the services of a real estate agent to guide you through your next home buy.

1. The percentage of second home owners who are more likely to use a real estate agent in their next home buy is quite high. Among trip-home owners it is 79 % and investment-home owners 73 %.

2. Among second home owners, 65 % of trip-home owners and 64% of investment-property owners are more likely to use a real estate agent in their next home sales.

Given these statistics, it is no wonder that the real estate agent plays a pivotal role in helping people buy and sell second homes. So whether you are a second-home buyer or seller, enlist the services of an agent for a smooth, hassle free real estate transaction.