Buyers market.... really? (Phoenix: transfer, income, tax credit)

[amatrine]

Yeah, isn't it nice that they gave out all those risky loans, made profits while the market is high, had no risk at all because we the tax payers are paying for it.

[LesterBurnham]

Originally Posted by Friend of Sonic

Well, I exercised my ability to terminate the contract on the final day of the contract. This will give me more time to save up funds, and see where the market is heading. Hope I did the right thing... thanks to everyone for their insight.

I don't see much downside in waiting a bit.

[sheena]

Originally Posted by Friend of Sonic

Well, I exercised my ability to terminate the contract on the final day of the contract. This will give me more time to save up funds, and see where the market is heading. Hope I did the right thing... thanks to everyone for their insight.

I used to live in that area a about 7 years ago and I'm with Captain Bill you can do much better. You did the right thing.

[Friend of Sonic]

That's reassuring from both of you guys.
My realtor keeps telling me that I made a mistake and it's only going to become more tough to get a loan. Interest rates are going up, but with a 791 credit score, and no debt to my name, if I can't get a loan I don't imagine many other people being able to either.
Hoepfully I'll be fine-- I don't know if I should say "Forget about it" and rent for the next 6 months, year and save money or if I should still concentrate on buying a home. Honestly, I could care less about owning... I only have an interest because I'm finally not priced out of owning a home.

[Rick Lee]

Originally Posted by Friend of Sonic

That's reassuring from both of you guys.
My realtor keeps telling me that I made a mistake and it's only going to become more tough to get a loan. Interest rates are going up, but with a 791 credit score, and no debt to my name, if I can't get a loan I don't imagine many other people being able to either.
Hoepfully I'll be fine-- I don't know if I should say "Forget about it" and rent for the next 6 months, year and save money or if I should still concentrate on buying a home. Honestly, I could care less about owning... I only have an interest because I'm finally not priced out of owning a home.

It all depends on how much of a down payment you can come up with. If you want a jumbo loan, you will have a very hard time getting one with less than 20% down. If FHA, you're a shoo-in. Trouble is that jumbo guidelines are changing almost daily now and conventional is in flux too. When I was in the biz just before the collapse became imminent, guidelines were changing so fast, that something I told a client in the morning sometimes wasn't true by that afternoon or was 50 bps. more expensive by then. If you need to get into a house, do what you have to do to get in. With your credit you'll be able to refi later when things turn around.

[blueeyz911]

Originally Posted by Friend of Sonic

That's reassuring from both of you guys.
My realtor keeps telling me that I made a mistake and it's only going to become more tough to get a loan. Interest rates are going up, but with a 791 credit score, and no debt to my name, if I can't get a loan I don't imagine many other people being able to either. Hoepfully I'll be fine-- I don't know if I should say "Forget about it" and rent for the next 6 months, year and save money or if I should still concentrate on buying a home. Honestly, I could care less about owning... I only have an interest because I'm finally not priced out of owning a home.

sounds like you will have no trouble getting a loan with a 791 score and no debt. The only downfall may be higher interest rates or higher home prices. I just recently bought a house and even though many people said don't buy now, I disagreed and thought it was a great time to buy. With house prices and interest rates low, I am very happy with the decision I have made. I love my new house so now I will just kick back and wait for the market to come back. 3 years...... 5 years........ no worries.

[CG4]

I also just bought a house (foreclosure in good shape built two years ago and lived in for 6 months), got a sweet deal on my interest rate, and now have a place to live for about the same as rent...I can't complain right now. I am prepared for the value to fall a bit in the short term, but I paid less than 60% of what the previous owners did just two years ago. If it stays at the price (technically, if it appreciates the same as the inflation rate) I got it for long-term, I win. In all seriousness, everyone's situation is different...no one on a message board or in a realtor's office can tell you if it is the right time to buy for you in your situation. Good luck!

[GilbertMom]

If my Gilbert neighborhood is any indication, things are turning around. About two months ago the only house for sale on my street, which had been owned and rented for two years by an out-of-state investor (Las Vegas), sold for just 45,000 less than the investor paid in 2005 ($305,000 for just under 2400 sq. ft. with 11 ft. ceilings on a small lot with a pool and fireplace in a quiet, well kept neighborhood.) It appears that another investor bought it because they have been quietly fixing it up with new sprinklers, new paint and some remodeling. It currently has a lock box on it, so I think they are going to try and flip it. We'll see. We are located north of the new Loop 202 and just four miles south of the 60, so we have great access to the Valley. We also have a Polar Ice rink going in within 1/2 mile and are adjacent to a nice executive golf course.

We also have VERY few houses for sale in the neighborhood which apparently is appealing to buyers as well. One short sale, one FSBO, two for sale signs with realtors and two foreclosures that already sold way below market.

[GilbertMom]

Originally Posted by bluepacific

I don't really know about Arizona , but in San Diego a couple of years ago, there was a small house on a tiny lot in Logan Heights, San Diego going for $500,000. It was a dump fixer/upper. The location is crime/gang infested and looks and feels very much like South central LA if you are not really familiar with Logan Heights. So I completely understand the over hyped greed factor that was the craze back then.

Now you can get a luxury high rise condo with ocean view in San Diego for under $400,000. If you ever wanted to move to S.D., now is the time! Plus the salaries over there are twice what they are here!

[GilbertMom]

Originally Posted by movin'on

Well, I am no genius, but I say don't buy at the top of the market. We are not at the top, and we are most certainly not at the bottom where is one should be to buy. Sit still. Watch the markets. All is about to break loose (as in hell). Once that happens it might be time to buy. I give it six more months.

I totally disagree. If supply and demand is truly the basis for our economic system, demand will outstrip supply in about 18 months since new houses are not being built at a fast pace right now. When they do start building again, labor and materials costs will be about double what they were in 2000-2006 because of anti-immigration sentiment in Arizona and inflationary pressure on the raw materials market which will make resale homes at pre-downturn prices look like a bargain.

Just on my street alone we have people who have moved here from New York (two households), New Jersey, Tennesee, California and Illinois in the past four years. They paid the highest prices for our neighborhood (about $165 sq. ft) and I believe that they will still see a good return on their investment over a ten-year period.

If people are still paying $225 sq ft for run-down properties in Phoenix and Scottsdale and $400 sq. ft for nice properties in the same locations, they will certainly be looking at the beautiful houses with dual pane windows, 11 ft. ceilings, upgraded kitchens, good schools and nice neighborhoods in Gilbert, Surprise, Avondale, etc. for $165 sq. ft.