HOW TO TELL IF YOUR MARKET HAS HIT BOTTOM

June 25, 2011 at 7:03 am Leave a comment

By: Maria Hass*

Recently, the Wall Street Journal published an article “How to Tell if Your Market has Hit Bottom”. This is a popular question every real estate investor would ask. The report describes three key factors that influence this outcome namely – Jobs, local rents and foreclosures. The report is helpful in identifying key elements that influence prices. Also, the rent vs buy formula suggested by the article to determine whether the market favors renters or buyers helps in arriving at an informed decision. Based on this article, I have gathered the following conclusion;
1. The real estate market is as local as its neighborhood’s performance. Beware of using national data to influence your real estate decisions.
2. Many areas in Arizona favors buyers than renters because of the 50% to 85% price decline from the peak. However, be careful about investing in foreclosure neighborhoods. These neighborhoods may still go down in value.
3. Invest in homes that have jobs and least affected by foreclosures. The cheapest areas are NOT always the best areas to invest in. Price is NOT the only consideration when buying a home.
For a full story go to http://online.wsj.com/article/SB10001424052702303657404576363143130774406.html

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , .

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