I received an email from a potential home buyer this week, telling me that it is not a good time to buy a home. I didn’t necessarily agree, so I shared some of the following information with her.
I asked if she’d be following the interest rate forecasts, and let her know that inventories (homes for sale) are starting to level off. In some Scottsdale zip codes, median list prices are starting to increase.
Some other reading that I recommended included the Time magazine article “Ignore the Headlines“.
And also, the article from Tuesday’s Arizona Republic, “After months of declines, existing-home sales up”
My perspective is that we won’t know that we hit the bottom of this market, until it’s past.
The writer responded back asking for more information on the areas where listing prices have been increasing, and I’ll share that Scottsdale update with you tomorrow.
Two other related posts on our current real estate market:
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Amen!
Great Post Dru.
No one will know the bottom till it has past. With increased home sales happening across the valley, I think we are seeing the change happen now.
The bottom of the market will be an obvious thing, when it’s 6 months or a year in the past. You’ll look back and go, see the graph, there it was! It’s like looking at the graph and seeing the top of the market.
It’s funny, that the psyche of many buyers is they are willing to may more for a home, by waiting too long, rather than take a risk that they pay too much today, for a home that may decline in value. It’s almost like knowing you paid more is easier to swallow than wondering if you paid more…
Chris, You twittered me a great link from your Florida market that really confirms and adds value to this post.
A rising mortgage rate could nullify future price drops
Thanks!
Steve & Irene,
I agree wholeheartedly. In the heat of our market, homes sales peaked here in June of 2005. While a decrease was noted in July, it took until September/October for people to really start thinking times were changing, and then by December, it was very clear.