Home prices had peaked in 2006 but got down by 20% in 2008. What will be the housing trend in 2009? Most people would like to think optimistic and but economic experts predict another 15 to 20 percent decline until late 2009. This means the real estate market will have to go through another lousy year.

The million-dollar question: what will happen when home values fall lower in 2009? There could be a lot of bargain houses to be sold; thus, pushing the demand factor to high mode. This speculation could lead house prices to rise at 3 percent.

With these contrasting views, strategies will depend on whether you are a home buyer or a home seller.

For home buyers:

1.    Look for houses that are on sale for more than 3 months. Sellers know that there are a lot of houses for sale so they will be easier to deal with even when you offer a lot less than the actual price. You may start at 10% below the asking price.

2.    Add hefty points to your credit score. 2 years ago, a 680 score could give you the best rate on any mortgage. These days, your score should be 780 to 820. Paying off your debts regularly will largely improve your credit score.

For home sellers:

1.    Play the waiting game, especially if the value of your home suffered a 40% decline. Listen to advice from economic experts to wait and see.

2.    Primp your home as though you plan to live there forever. Add modern fixtures or other architectural details that enhance the design of the house.

3.    Lower your asking price by 5 percent. Do a research on the home price appraisals in nearby towns or states, especially the price of the houses sold recently. Offer a discount based on the price of houses that are similar to yours.

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