Realtors may be knowledgeable on current and past prices for their area, but they are NOT experts on future price trends. Realtors are NOT economists and very few have any business or economic training to speak of. They are SALESPEOPLE. The reality is that they only get a commission if you buy, so they have an incentive to be less then accurate as to their assessments. The few competent Realtors with integrity would admit that prices are going down and most buyers could save money by simply waiting for the bubble to further deflate.
Best of Luck,
It is hard to say if prices will continue to drop and if they do how much may depend on where you are looking. The out lying areas may continue to see price declines based on the number of REO properties, but they are being snapped up rather quickly.
The time to buy depends on what your goals are as a home buyer. Are you planning to live in the house for 5-10 years, if so, any further decline in price, most likely will be regained in the coming years.
If it is a short term investment- this may not be the time for you to buy.
If you are currently renting- would a decrease in the value of a home you purchased match what you are giving away in rent?
Interest rates are low- again will the rise or fall- I don't think there are any guarantees.
So it may be a great time to buy or it may not- really depends on what your goals are.
How right he is! I don't have a crystal ball...but I do have horsepower and resources to finance the lovely new home you may choose!
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Land prices are coming down, in most areas. Your description of a west side with Mountain Views location sounds like Vistancia to me. That's a master planned community that has custom homesites available, although there are plenty of choices on the west side which don't fall within a master planned community. Your lifestyle would better dictate that direction.
Given the scenario you describe, I honestly don't think it will matter significantly if you decide to build/buy today or next year. My not-so-crystal ball tells me that across the Phoenix area, prices are generally still moving downward. Since you aren't financing, the move up of interest rates which is likely after the election means you could save on the land a bit by waiting, but given you think you will build custom, I think your construction costs will probably increase, as increasing gas prices force construction material prices higher.
Then again, I could be wrong on every single point, but that would be my best guess today. To be honest, I would be comfortable being a buyer right now, so long as I had a 5 year time horizon or longer and knew I was getting a deal (at least 5% below the last sale). And this is the first time I've felt that way since August of 2007.
Realtors tell you, it s LOCATION, etcetc, they are absolutely correct!!! I would rather stay in my area of town than save thousands on a DEPRESSED area!!! Go to the City of Phoenix web site and check out the foreclosure map to see where the hardest hit areas are, you'll find my zip code (85032) VERY stable and a great location as well. HOPE THIS HELPS!!
I wonder how that has worked out here in Phoenix? Down 20% OOOPS not so well!!!
"but buy before rates go up!"- OOOPS rates went down... so by ignoring all the realtors, you get a home 20% cheaper, and a lower interest rate!
thanks for the great advice guys! keep up the good work!!!!
Now, it is absolutely the opposite, the deals avaialble are amazing. If you go to the suburbs, you get more bang for your buck. One of the suburbs that I live in, Maricopa is just a 20 minute drive to Chandler, 25-30 minutes to Tempe and Mesa and 35-45 minutes to the airport and Downtown Phoenix. It is in Maricopa, with all of the foreclosures to be had, that you can get homes at $45 to $75 per square foot, and these are all homes in beautiful master planned communities and are homes built in 2000 or later. This is a buyer's market personified. If you have questions, please call me at (480) 250-8040.
new builds i.e., builder specs are being sold with attractive incentives - but many have been sold and builder ar only starting new homes with contracts; resales are best bet, either REO property or mls listed--stay awau from short saleds as they get bid on and there is no deal until bank says so.......... http://.www.scottsprop.com...........John Lynch RE/MAX Fine Properties
Unfortunately, predicting the market is pretty near impossible. I have a client who just purchased a builder inventory home in the west valley that originally sold for well over 650k for just about half price because the builder wanted to move the house. In this instance, it was a great buy. It's pretty much a gamble. I really think that the current market is great for buyers because if prices do drop, I don't see them dropping too drastically and if you plan to stay for a while, you SHOULD end up well ahead in the long run. Just do your homework and make sure you get an agent that will spend plenty of time finding a property that truly makes you happy.
Food for thought.
At any rate, help us out, and provide a bit more motive about what you plan to use the home for, where you are looking, etc. There are actually parts of the valley/market that are actually seeing a price increase right now, so it's not a very simple yes/no answer.
I believe it's a Great time to buy! Our team has negotiated some AMAZING deals for our clients. Because of the advantage position that Buyer's have right now, it would wise to jump in if your truly financially able. You can't go wrong whether your interest is in New Builds or Resale. The sweet smell of Seller Concessions is in the air! Don't let this window of opportunity close before you make a move.
If you are looking for a short term return on investment this is still not the best time but for a 3-5 year turn around I think you would be in pretty good shape!
There are some great deals out there, and some not so great deals.
The home buying process takes time, you need to get out and look at a few homes, see what they have to offer. Figure out what it is you want in a home. What is your dream home, and where is your perfect location. How much will it cost you a today rates?
Is this a good time to buy? Yes, if you find the perfect home that meets your needs and fits your budget.
Phoenix is a rather large place. A few neighborhoods have weathered the downturn very well. Many more have been hit hard.
In my opinion we stand a better chance of going lower, than higher. It really depends on what you buy and how much you spend.
If you are in the affordability range of 175K - 225K you should be out there. The only time we will know that the market has stopped declining is when inventory is low and prices begin to rise. Then it will be to late, because there are a lot of buyers on the sidelines. The best time to buy is when no one else wants to
Good Day & Good Luck