All Clear on Home Front

Sellers have done better in the last the five years than during any time in history. And although things are slowing, you have to keep it in perspective. Sure, your neighbor might have made $100,000 on the sale of his equivalent home last year, but you're still probably looking at a $75,000 profit. So take the money and run. Don't be a "pig," as Cramer constantly reminds us all.

The market is stabilizing -- all it's doing is getting back to normal. At the end of 2005, we were at a five-month supply of inventory, notes Stevens. We're now at a six-month supply. And that's a normal market. That means less price appreciation and a steadier market for the long haul.

And that's much better than the frenetic, fast-paced pandemonium we've been in for the last few years.

Foreclosures Ahead

Let's face it: More foreclosures are coming. Far too many people squeezed themselves into McMansions with low interest-rate adjustable loans a few years back. Well, those loans will start coming due by year's end. That means the initial two- or three-year honeymoon period with that low rate is almost over, and their interest rates will start to adjust according to the market. So monthly mortgage payments might have some trapeze-artist swings.

That means you can expect to see some more "For Sale" signs by the end of the year.

And while it may be sad to see your neighbor go, it could translate into a buying opportunity for you. Folks who need to unload their homes quickly will be willing to bargain. Bring a plate of your best homemade cookies, put on your negotiation cap, and go ring the doorbell.

So enjoy May. Grab a cup of coffee and stroll through some open houses. You may be pleasantly surprised at what you find.