Archive for November, 2008

Recent Observations on Investing in Arizona’s Real Estate

It doesn’t really matter what the media is reporting — what matters is what I see daily in the industry that I breathe day in and day out. Here are a few of my recent observations:

1. A Great Market for Investment – Today’s market offers a great opportunity to buy homes at deep discounts. Arizona homes are selling at clearance prices – 50 to 60 cents on the dollar. This is a historic time. “Buy Low, Sell High” has always been a good investment strategy. But sometimes, due to our short-term perspective and emotional fears, we tend to defy logic.

Today’s market offers first-time home buyers a $7,500 tax credit if they purchase a home between April 9, 2008 and July 1, 2009. For those renters who are watching their rent money go down the tube with no return whatsoever, this is the time to seriously look into the advantages of home ownership.

The Arizona Republic reported Arizona’s unemployment rate is 5.9 percent as of September 2008, which means 94.1 percent of the Arizona population still have jobs. Interest rates are still at low levels, averaging in the low to mid 6 percent range. The real estate market in Phoenix is poised to come back quicker than other cities because of the region’s robust infrastructure, affordable housing and vibrant lifestyle.

2. Don’t be Afraid to Sell – Yes, we have heard a million times about foreclosures rising, forcing home values to come down. But foreclosed homes affect areas in different degrees. Tempe, Chandler, South Scottsdale, Gilbert and parts of Phoenix home values are holding up better than Queen Creek, Maricopa, Apache Junction. These areas don’t have many foreclosed homes.
I sold a house in two days in Chandler. I sold my own home for full price in this market. If your home is priced correctly, shows well and is in a sought-after location, you really don’t have anything to worry about. However, if you your home is overpriced, you’ll get many showings without an offer. Buyers in this market will not pay for overpriced homes. As sellers, it’s always important to know the reason why you are selling and to be ready to negotiate.

3. The Market is Volatile – What this means for buyers is that the lending guidelines and loan requirements may change. As financial institutions struggle with credit, applying for a loan will require some patience from both the buyer and seller to close the deal.

Now, more than ever, is the time to act on an investment plan. If you have good income and credit and plan to hold the home long -term, this is a great market for you. If you are interested in taking advantage of this amazing buying opportunity but don’t know where to start, you know where to find me. I will simplify the process for you.

November 1, 2008 at 11:29 am Leave a comment

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