“Should I buy now? Or wait, and rent for awhile?” Seems to be the most popular question to ask here in the Phoenix recently. I was asked the same questions a couple days ago by a prospective client.
Many buyers are looking for some strong signal that the real estate market has hit the bottom so they can hurry up and buy. And when the re-balancing begins, if it hasn’t already, it will not necessarily be all types, or locations, or price ranges of home will improve at the same time or speed.
Real estate is local, even to a specific floor plan in a community. A few weeks back I shared some statistics I compiled for six subdivisions in McCormick Ranch, where several communities had depreciated, and a couple showed appreciation. Until you look closely at the local pricing history, it’s hard to say exactly where a given market it.
Yesterday, I sat down to prepare a market analysis report in preparation for writing a purchase contract for an older, centrally located Scottsdale townhouse, that appeared to be in very good condition. The buyers were very surprised when I showed them that prices were still appreciating in that community, and that the average number of days to sell is a mere 32 days.
Is this a recovery in this segment of the market, or did the community just weather the changes better than other areas?
And then today, this Reuters article pops up: Bargain hunters may toss a lifeline to housing
I especially appreciated Russell Shaw’s perspective:
“I think this is the best buyer’s market that has existed in a decade, maybe longer,” said Russell Shaw, in his 30th year with John Hall & Associates real estate in Phoenix. “There are tons of inventory, great interest rates and the prices are back in line to where houses are decently priced again.”
“If people have a good track record of paying their bills, the loans are there,” Shaw said.
Buying vs. renting is a question that is asked in every market, buyer’s or seller’s. And there are fundamental questions you should ask yourself in making a home buying decision, along with financial evaluation and preparation. And yet, for many home buyers, there is often some intangible internal driver that’s pushing them forward to get into a home of their own. The dream of home ownership is still alive and well. You just may have to work a little bit harder to get there.
