For buyers, this means snagging a home at prices not seen since 2001 or 2002. And in some cases, you may be able to even find a home for 50 percent off.
According to Zillow real estate blogger, Brendon DeSimone, many of the so-called extreme bargains available are either foreclosures or short sales, but notes that just because a home is victim of a distressed financial situation doesn’t mean the condition of the home is distressed, too.
"There are lots of beautiful homes that are move-in ready, or close to it, that are distressed sales. And these homes are being snatched up quickly," said DeSimone.
Additionally, with interest rates for 30-year fixed mortgages continuing at less than 3.9 percent, there is additional incentive for shoppers to take advantage of the current down market.
What kind of homes can you get for 50 percent off? We rounded up a few worthy contenders:
Pauma Valley, CA
2006 sale price: $990,000
Current list price: $495,000
Price cut: 50%
A golf-lover's paradise, this 3,184-square foot home is located in the Pauma Valley Country Club with fantastic views of the golf course and surrounding mountains. The remodeled home features an over-sized master bedroom with an en-suite bathroom with sauna, extra-large shower, and custom organized walk-in closet. Other amenities include a chef's kitchen, double-sided fireplace, outdoor patio, and a 2-car garage with separate door for a golf cart. Pauma Valley median home values are currently $273,100.
Oak Island, NC
2006 sale price: $955,000
Current list price: $449,000
Price cut: 47%
Looking for a great beachfront home at an even better price? This North Carolina home for sale boasts 5 bedrooms, 3.5 bathrooms and features high ceilings and an open floor plan. The large great room has hardwood floors and decorative molding. Perfect for sitting back and enjoying the Atlantic Ocean views, the home has two front porches and a back deck that leads out to a private pool.
2008 Sale price: $989,200
Current list price: $450,000
Price Cut: 45%
You don't need to spend millions of dollars to own a home near the ski slopes. This 2,273-square foot Colorado home for sale is only 20 miles outside of the high-end ski resort town Aspen. Finishes include hardwood floors, granite counters, stainless-steel appliances, and a jacuzzi in the master bath. The midpoint home value in Carbondale is $417,900.
2007 Sale price: $510,000
Current list price: $249,000
Price Cut: 48%
Surfing, white sand and Hawaiian breezes are yours for discount of nearly 50 percent. Located in central Maui, this beach house is steps away from the ocean and the world's best surf. The 5-bedroom, 2.5-bath home has a versatile floor plan including a separate entry to the second-story living area and another entry to the upstairs, offering plenty of privacy.
2006 Sale price: $525,000 Current list price: $245,000
Price Cut: 46%
This quaint historic home and guest house an hour outside of Washington D.C. is situated on half an acre in the village of Hillsboro. Built in 1793, the 2,190-square-foot residence has pine plank flooring, beam ceilings, stone fireplaces, two brick terraces, numerous built-ins and fenced yard with plot for a vegetable garden.
2006 Sale price: $275,000
Current list price: $164,900
Price Cut: 59%
For $164,000, this Auburn home for sale has quite a bit of space. Boasting 5 bedrooms and 3 bathrooms, this home is move-in-ready and features a variety of amenities including a spacious eat-in kitchen, master suite with walk-in closets, as well as a large backyard with swimming pool.
2006 Sale price: $227,936
Current list price: $129,900
Price Cut: 56%
Located in Meridian's newer Tumble Creek subdivision, this 4-bedroom, 2.5-bathroom home has a large family room and dining room plus a separate bonus room upstairs. Outside, a brand-new stone patio with fire pit and spacious yard is perfect for gardening.
2006 Sale price: $239,000
Current list price: $109,900
Price Cut: 45%
This charming historic Victorian home is located in the heart of Anoka, just walking distance from schools, shopping, restaurants and coffee shops. The 2-bedroom, 2.5-bathroom home features an updated kitchen and dining room and has had extensive landscaping and hardscaping, including a large back patio, great for summer barbeques.