Phx Metro Housing Market

[azjack]

It looks like the Kool-Aid is still flowing around this board. Metro Phoenix house prices will continue their decline for years. It is always dangerous to catch a falling knife.

[Captain Bill]

Originally Posted by john3232

There are a lot of good deals right now but I'm wondering if I should wait at least another six months before buying.

Any advise?

Thanks

John, no one can forecast what the future will bring. Historically a declining market lasts around 2 years.

There has already been a significant decline in prices. Interest rates are low. With good credit, good conventional financing is available.

The FHA is developing better programs to help people, and we're hoping they will raise the price level at which they will accept, to something over $300k.

Everything is working toward getting the market turned around because a healthy real estate market helps to keep the economy moving.

An advantage a buyer has today is the very large selection from which to choose.

Location is extremely important and the smart buyer will choose the best location, the best house in that location at the best price. That is what buyers are doing today. They are cherry picking, so to speak.

As the inventory declines so will the choices.

If you think you may have to sell within a couple of years, then my advice would be to not buy now. If you are planning to hold your home for at least 6 years then you should be just fine.

I have a property on the market in California and as soon as it sells I will be buying two homes in the east valley to hold long term as rentals.

Bill

[SHEPNYC]

Originally Posted by azjack

It looks like the Kool-Aid is still flowing around this board. Metro Phoenix house prices will continue their decline for years. It is always dangerous to catch a falling knife.

I agree. Prices will continue to fall through 2008 and possibly 2009. No rush to buy anytime soon. I believe when prices reach bottom they will continue to scrape the bottom for a year or two. This is not a Phoenix problem, it's pretty much a national problem at this point.

[_Charles_]

It looks like the Kool-Aid is still flowing around this board. Metro Phoenix house prices will continue their decline for years. It is always dangerous to catch a falling knife.

Nope not Koolaide for those that are buying to get something they want and plan to live in.and not the carpetbagger flip thing.

[azjack]

"buying to get something they want and plan to live in.and not the carpetbagger flip thing."

Purchasing a house that will lose tens of thousands of dollars (or more) in value in the coming years is a bad deal for anybody. You can live in a rented house, enjoy life, and buy when prices are far lower as the housing bust plays out. Or buy today, I really don't care. It's your money.