Good day to you Donna,

Our broker, John Foltz, made an interesting observation the other day. He said, "If you asked someone in July of 2005 what they thought about the real estate market they would have said it was GREAT even though July 2005 marked the shift in the market downward. If you asked someone last month what they thought they would most likely say it was horrible while the stats are showing market strength"

The same pattern was evident in the 1990 stock market. Foltz suggests that the best time to get out is when everyone thinks things are hot and the best time to get in is when the public says not to.

As always, buying wisely is prudent. A great location, popular features and priced right matter.

Wed Apr 16 2008, 09:17

Hi Donna,

As you know the motto in real estate is location, location, location. So when we hear on the news that the housing market is due for a 25-30% correction they are speaking on a national level without considering the fact that some markets, like the Phoenix area, have already declined 25-30% or more. To say that we in Phoenix have another 25% to fall is uninformed on the media's part. If they were here on the front lines with us they would see that the bank owned properties are flying off the shelfs. Literally! We are actually seeing multiple bids and bidding wars on these properties now. I say it all the time, once the word hits the news media that it's time to buy real estate, it will be too late. Buy now while the deals are still available.

Fri Apr 11 2008, 20:47

Hi Donna

Deborah is correct in saying that what is going on in the real estate market is area sensative.
Here in the Phoenix Metro area, it is a great time to buy. Prices have come down anywhere from $70k - $150+ which is significant from prices 2 years ago.
The great thing about Arizona is even though are housing market has come down our retail/commercial developments are still thriving. Arizona has 9,000 people a month moving here from all over the country/world. We were not prepared for all of this growth so we are playing catch up with retail/commericial, new freeways and roadways in all areas, a new light rail that is in it's final stages.
We are a growing city. No one has that crystal ball to see for sure but even if prices were to come down more it would not be as significant as how much it's come down already. Real Estate is no longer a quick fix. Real Estate is a long term investment due in part to the cycles Deborah mentioned. Dependant on some areas NOW is a great time to buy and you will gain equity...in due time. 4-5+ years
Hope this helps! Best of Luck!
Ilona

Wed Apr 9 2008, 13:28

I think it is a great time to buy real estate if you don't plan on moving anytime in the near future.

Wed Apr 9 2008, 13:18

The decision to buy, in any market, has more to do with YOU; and are you you ready to buy, how, and for what purpose.

Do you have a written goal addressing those issues?

How do your goals measure against the market and what and where you wish to purchase?

If you need help structuring and evaluating your plan contact a mortgage professional. if they fail to ask the questions, MOVE ON...NEXT!

Wed Apr 9 2008, 13:11

Real Estate is a very local issue. The media reports on a National basis and therefore what they report is not true for many markets. For instance here in Westchester County NY we are not seeing housing prices tumble in great value and we are not seeing lots of foreclosures. Often conditions such as this are a direct result of job losses in a location or over building in an area that is popular for second homes etc. I don't know your market and I would advise you to learn from the local agents and possibly your Board of Realtors if you have one, what is happening in your area specifically.

For the most part real estate moves in cycles. Prices go up and go down over a period of time. If you are a buyer that is looking to stay in a home for the long haul it may be a good time to purchase. If you are an investor or someone who feels they will move in 3-5 years it may be wiser to wait.

Wed Apr 9 2008, 12:26

I am unsure of the Arizona market conditions, but here in NC it is a great time to buy. Interest rates are low, inventory is high, it is a great time to buy. As any agent knows the market goes in waves, it's up then it's down. We know it's just a readjustment period and it will come back so it's a great time to get in now. People will always need places to live, get transfered, move, get married, get divorced, or pass on. That reality says there will always be buyers and sellers. I say turn off the television when it comes to real estate, we are still moving forward.

Wed Apr 9 2008, 12:09

Media Track Record vs. "the FACTS"



The Media’s "Take" on the Real Estate Industry VS "the FACTS".

The Media’s "Take" on the real estate industry is nothing new. For decades they have practiced doom and gloom tactics and in some cases have actually caused real estate prices to decline short term. The GOOD news is, each and every short term decline has been temporary and has been followed by long term price appreciation.

Today, we are in the middle of a Window of Opportunity to purchase attractive real estate at the best prices we may see in our lifetime and to receive “incentives” on our purchases on top of it! The incentives by builders and developers, attractive mortgage rates are favorable indicators for Home Buyers. Once the market begins showing signs of a rebound, these incentives may dry up.

Sit back and enjoy some of the projections from yesteryear and allow them to mirror the wide variety of “fear factor” type comments that exist today.

"The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline."
- Time Magazine, 1947
"Houses cost too much for the mass market. Today's average price is around $8,000 - out of the reach for two-thirds of all buyers."
- Science Digest, 1948
"The goal of owning a home seems to be getting beyond the reach of more and more Americans. The typical new house today costs about $28,000."
- Business Week, 1969
"You might well be suspicious of 'common wisdom' that tells you, 'Don't wait, buy now… continuing inflation will force home prices and rents higher and higher.'"
- NEA Journal, 1970

"The median price of a home today is approaching $50,000… Housing experts predict price rises in the future won't be that great.”
- Nations Business, 1977

"The era of easy profits in real estate may be drawing to a close."
- Money Magazine, 1981
"The golden-age of risk-free run-ups in home prices is gone."
- Money Magazine, 1985
"Most economists agree…. [a home] will become little more than a roof and a tax deduction, certainly not the lucrative investment it was through much of the 1980's."
- Money Magazine, 1986
"Financial planners agree that houses will continue to be a poor investment."
- Kiplinger's Personal Financial Magazine, 1993
"A home is where the bad investment is."
- San Francisco Examiner, 1996
"Home prices experience historic drop."
- CNN Money.com, 2007

Each and every negative prediction relative to the Real Estate Industry in our great American economy was short-lived. At the time such predictions made it appear Real Estate would never go up again in value - similar to the way it may feel for many now. The GOOD news is found in the few lines below. This time is NO different than times past!

FACT: National Real Estate as noted in a recent (2/08) National Association of Realtors online publication noted values have appreciated
• 88% since 1996
• 340% since 1977
• 685% since 1969
• 2650% since 1948


If you are in the market to Sell or Purchase, consult your PROFESSIONAL Realtor

Wed Apr 9 2008, 12:07