How are buyers viewing the current housing market? With the sudden turn of the economy, buyers are now in control with the historically low interest rates and supply exceeding demand in the current housing market. Gone are the days when sellers had buyers wrapped around their finger.

Has it truly become a buyer’s market?

Everyone agrees it is a buyer’s market. Buyers are constantly looking for their perfect home at the perfect price. They search for the bargain of their dreams while the sellers hope to keep their shirts.

Many people expected a pitch in the housing market after the tax credit of $8,000 expired, but no one was able to foresee the calamity that happened. The housing market began to drop immediately after the tax credit was unavailable.

The National Association of Home Builders/Wells Fargo Housing Market Index showed every United States region had lower sales in June compared to May 2010.

Builders were also affected greatly by this shift. Home builders are leery of unstable appraisal practices, rivalry with short sales and foreclosures, and trouble getting financing for production of homes. According to David Streitfield’s article on June 16, 2010 in the New York Times, new home construction in May 2010 took a nose dive of 17% from April!

Buyers are throwing their weight around at closing negotiations and so are making exceedingly low offers. They believe that all sellers are only selling out of desperation. Buyers view buying during the decline in the housing market is simply being intelligent. The sellers view it as taking full advantage of their disadvantage.

Cindy of Evergreen, CO has decided to rent her home rather than take a low-ball offer. Although for most times are frantic, she has her bar set on how low she will negotiate..

However, a buyer in Chicago found a house he liked for $539,000 and offered $500,000. Before the deal was complete the inspector mentioned he would have to replace the windows eventually. The buyer used this as leverage to get another $10,000 out of the deal.

If the sellers had not compromised, the buyer stated that he would have just walked away from the deal. The buyer said he had the position in the sale and had a lot of options in this market. In the current housing market and supply exceeding demand, he was correct in his thinking. It is not a unique strategy for the negotiators of the buyer to make a reasonable offer to the sellers, and then renegotiate when the inspectors have had their say.

A good seller’s agent should prepare their sellers for this possibility. If not, the sellers may fell humilated and upset. A quality buyer’s agent will also be aware of this. Many deals are falling through at the last minute. In a normal stable market the average of last minute deal breakers is 5%. In Sacramento, CA Mike Lyon of Lyon Real Estate estimates that 15-17% fall apart during closing in 2010.

However, it is helpful to keep the perspective that overall sales are increased from May of last year. The National Association of Realtors said sales were up 2.7% this May from May of 2009.

Everything works in cycles, and it is anyone’s guess as to how long it will take this buyer’s cycle to complete.