Home Buying in Phoenix>Question Details

Shahir, Real Estate Pro in Phoenix, AZ

Should I buy in south phoenix or not? Seems like the market has not hit bottom? Any ideas on when to purchase?

Asked by Shahir, Phoenix, AZ Tue Oct 16, 2007

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It's a good time to buy if plan on being in the home for at least several years. A bit trickier if you move in a year or two with the uncertainty in the market. What I do know is that there is a tremendous selection from which to choose right now and, as others have noted, very low interest rates. If prices dip a bit further, but rates increase, what have you gained in waiting? South Phoenix is definitely an area where you should be buying for the future, not the present. Along the Baseline corridor specifically, there is a glut of development that needs to sell before values stabilize. With builders offering deep discounts and incentives, you can secure a great value, but values will most likely fall a bit further until the over-supply is thinned. Smarter people than I will tell you, however, that trying to time that perfect buying opportunity is impossible. You only realize when bottom has been reached because more buyers have entered the market and prices are heading north again. Purchase with eyes wide open, but don't miss the boat by trying to time the market.
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2 votes Thank Flag Link Wed Oct 17, 2007
I just bought a two-story, 4 bed / 3 bath / 2 car garage house in South PHX for 63% less than it sold for new
4 years ago...with an intrest rate at less than 5%!

Is the mkt starting to come back? With this deal I don't think it matters (to me)...but I will tel you this, I ended up having to out-bid 4 other buyers for this one, and paid 10K over asking price. That tells me yes, for the right property...but more importantly it told me this would likely still be a desirable proprety a few years down the road when I'm ready to sell and prices have gone back up.

PS I'm not an investor or real estate professional...many thanks to my agent, WM. (Hunter) Clark, for his expertise & patience throughout this process!
0 votes Thank Flag Link Mon Apr 20, 2009
wow!!!! 100% of the agents said it was time to buy oct 07, in south phoenix!


well, prices have dropped some 40% since then!

come on back around and apologize, for being completely wrong!!!
0 votes Thank Flag Link Mon Mar 30, 2009
To buy or not to buy that is the question. Looks like your looking to buy and sell. Let me say that I think it is still a good time for both. You may not make out as well on the sale side of the transaction, but you could stand to gain it back on the purchase of your next home. I work a lot in the South Phoenix area, and home prices are still looking to drop, and probably will for another year. But like everything in life, real estate is cyclical and it will come back. I'd also say that the market shifts rapidly in todays world, you'll not be able to time it. Just look for what is right for you, and go with it.
0 votes Thank Flag Link Tue Nov 27, 2007
Shawn,

This is a great time for buyers with homes being reasonably priced, interest rates are still very reasonable, and sellers are paying closing costs on quite a few contracts. Things may slow down a little more going into the Holiday season, but from all the articles I have been reading, home owners should start realizing equity gain by late 2008. Real estate has always had highs and lows, and I certainly think it is a great time for home buyers.
0 votes Thank Flag Link Wed Oct 17, 2007
NOW is the time to buyer!!!! Don't think it really matters on were you buy. The market will take a turn for the better at some point ..... not sure when. I would say if you plan on holding onto the property for at least a few years, as the way the market has been working here for the past 10 years more or less. You will make a profit.
0 votes Thank Flag Link Wed Oct 17, 2007
I moved from Scottsdale to PA a few years ago so I know a bit about the area. I think the others making statements here are correct, its a great time to buy with LOW interest rates and with the number of properties on the makret in Phx now - there has got to be negotiating room. I hear some sellers are having a hard time just getting showings. I would look around, be patient and the right property will reveal itself. Look for the best deal around and negotiate what you can on it. Good Luck
0 votes Thank Flag Link Tue Oct 16, 2007
I addressed this in a blog post last month ... the link is below.

If you're planning on holding the property for any length of time, there's no "right" time to get in. You're not going to know when we've hit bottom until we've come off that bottom. And once we've come off that bottom you're going to have less supply and sellers less willing to offer some of the concessions common to the current market.

South Phoenix incorporates a number of different neighborhoods in a number of different price ranges. If you've got specifics on where you're looking, I can provide you some specific data for that area.
0 votes Thank Flag Link Tue Oct 16, 2007
Market has not hit bottom. Simply looking at supply and demand will tell you that. I can give you more specifics for data if you like. What you also need to heavily consider is Anna's note about interest rates. Your interest rate will effect your payment every bit as much, if not more than another 5% reduction in prices. I would say buy now, yet buy right. Be "picky" and take advantage of the market and negotiate a price below market. When it's an obvious time to buy and everyone is doing it is too late. Many "real" investors are buying right now, and they're buying below market. Buying a short sale or bank owned property can really be great opportunities to explore at this time. Work with an experienced agent, be patient and aggressive and lock in your rate. Long term interest rates could start trending up again so don't wait too long.
0 votes Thank Flag Link Tue Oct 16, 2007
Now is a great time to purchase! Interest rates are still low and it is always better to put your money into a home than to throw it away on rent.
As for South Mountain, it is an up and coming area that is valued for its great access to downtown and Sky Harbor. I would not hesitate to buy a home in the South Mountain area as long as you are planning on keeping it for at least 3-5 years.
0 votes Thank Flag Link Tue Oct 16, 2007
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