Buyers Market? (Phoenix: rental, buying a home, buying)

[dairou]

OKAY
I'm a Canadian living in Seattle, and home prices are expensive here.
When I surf the MLS sites, home prices seem to be a lot lower there, but is it a buyers market? When I bought my home here 2 years ago, I would search between $300 000 and $400 000 and about 10 homes would pop up. When I search the same margin in the Phoenix area, about 6000 homes pop up.

Is it a buyers market, or just cheap?
Have prices dropped a lot?, What's going on there?

[AksarbeN]

It’s all relative ~ if you’re selling a home the market is “slow” and you can’t get enough for your home, if you’re buying a home the market is “too high”. Within the next several years there will be so many homes on the market that we’ll be swimming houses and the prices will be very low. Too many homes were sold with interest rates that are going up in the near future and people can’t make the payments. Their jobs don’t allow for extra earnings and raises and when the payments come due they may not be able to stay in their houses. I hope I’m wrong.

I heard that the metro area had 44,000 homes on the market and a year ago there was only 17,000 homes. Go figure! At some point the crazy builders have to stop and allow the market to catch up.

[Lorann]

The market here is definately in a downturn. Most analysts agree prices will still drop further. I'd wait a few years to buy in the valley. If you buy now, expect to lose some money.

[Ponderosa]

Hmmm... Couple things here. It's a buyer's market for new homes in that builders are offering big incentives to clear away their inventory. Resale home prices have seen some correction, but only about 8-10%. In some areas, prices are even up. But it's hard to judge prices either at the resale or new level because of what is selling, the fact that incentive don't get computed in the cost etc. It's cheaper than it was a year or so ago, but relative to 3 years ago it is not.

As for the number of homes on the market the numbers sound worse than they are. The inventory is huge by 2005 standards, but not by historical numbers. Unless the overall US economy tanks the surplus will drop to "normal" levels later this year at current absorption rate and then prices should stabilize and rise again just slightly above the inflation rate. You might benefit by waiting a few months to a year, but I don't think it is going to take "years" with 200,000 people a year moving to AZ. In fact, if I wanted new, I think now might be the best time because of the incentives, low interest rates, choice lots, etc. All in all it's a very complex issue with a lot of viewpoints being expressed.

In my opinion, if you find a place you really love and want to live in it, then buy it. Two years in a rental versus having your own home to decorate, care for, and live in for that time has "costs" too.

[Afterburn]

Are you putting in a specific zip code when you are looking at like realtor.com, or are you just putting in "Phoenix" and your $ paramenters Because if you are putting in just "Phoenix", you are gonna get everything in the entire Phoenix valley area in that price range, and that's a broad stretch.......

Best to pinpoint a general area here you are interested in, and use those specific areas/zip codes in your search.