It has become quite evident over the past months that the housing market is experiencing a significant slowdown; in some parts of the country this has been more evident than in other areas. This change in the market has created wide speculation about what is happening as is always the case with everything that ever happens in any market, be it oil, stocks, commodities or housing.

I am sure by now that everyone has heard the speculation referring to the slowdown as a housing bubble, meaning that home prices are drastically inflated and that a “burst of the bubble” or drastic nationwide decline in home values is inevitable.

I personally do not believe that a bubble exists but I do think price adjustments are and will be occurring in some areas of the country based simply upon the supply and demand.

The current excess in supply comes not only from new construction but also from a record number of foreclosures happening as a result of rising mortgage payments “resets” on adjustable rate mortgages, making it impossible for some to pay for their home.

With all of this activity and uncertainty in the market it can be very discouraging and quite easy to join many others that have gone to the fence to sit and watch. My thoughts are that money is never made by sitting on the fence doing nothing; my experience has been that doing nothing has always got me nothing!

Flipping a house in slower market conditions does represent greater risks and requires more caution and due diligence to what housing prices are doing and what you can buy and sell for, it is definitely a time to be more selective and certain about the choices you make. House flipping always requires a good understanding of your market and what it is doing but the bargains can always be found no matter what conditions exist.

When housing prices are in decline it is a good idea to keep things more on the simple side, lean more toward the cosmetic fixers. Limit the scope of your makeovers and upgrades to what you know will add value, don’t over due things.

Have a solid plan before beginning your rehab projects and know exactly what improvements you plan to make to the house. The more work you can do yourself the better your profit potential will be. If you do hire work to be done be sure of your help, you don't want to be at the mercy of undependable hired help slowing you down. Keep your turn around time as short as possible so that the house is back on the market as quickly as possible. Don't flip out, keep flipping!