Will Phoenix Housing Price continue to drop? (Scottsdale, Paradise Valley: sales, foreclosures)

[Rick Lee]

Originally Posted by NiceJohn

If you wait longer, price will drop more, you will save significantly. Do not use judgmental word like no brainer. Thank you.

So would you have to think long and hard about renting for $1450 a month or buying the same place for $389k in a declining market? Even with 20% down, your mortgage payment would still be more than the rent. Yes, I call that a no-brainer. Call me crazy.

[Rick Lee]

I can't imagine any bailout will include spec. houses, investment properties, builders or already foreclosed house. The ones we all see in various neighborhoods are way past the point of no-return when it comes to any bailout.

[altus2006]

Originally Posted by twiggy

I just think the real issue will be credit but are you watching what's in the bail out plan to help homeowners. This will paint a different picture if it passes. We might want to see what it does. It is designed to give more purchasing power and avoid people having to sell for any less than they already are. There will be more people able to buy and sell if this goes through, and it will change the market quickly. I'm watching what they added to it as I type. I will have to say, this will change a few things. I'll have to wait and see before I predict another down trend.

The one thing which will not change is that people will still be upside down on their mortgage no matter what the new payment may be. This is one reason people are mailing back the keys now and bailing out, so I don't expect these people to stay in their houses since "bailing" is now considered "OK" by a large segment of the population.

My bet is that housing will keep going down for a long time because of economic factors as well as buyers not qualifying under the new regs.

altus2006

[NiceJohn]

What is the impact of 700 billion bailout on the housing price? and interest rate?

[NiceJohn]

According to the expert online, housing price will go down till next year at least. Renting may make senses now.

[mwwwin]

Originally Posted by NiceJohn

According to the expert online, housing price will go down till next year at least. Renting may make senses now.

And this is on average throughout the US...they're saying 2012 for AZ...

[mwwwin]

Originally Posted by Rick Lee

So would you have to think long and hard about renting for $1450 a month or buying the same place for $389k in a declining market? Even with 20% down, your mortgage payment would still be more than the rent. Yes, I call that a no-brainer. Call me crazy.

Exactly...

[NiceJohn]

I agree renting is a good idea for now. One thing, Houses in some well established areas won't drop much. With energy crisis, people will live close to the employers, parks and shopping centers. For Examples, Tempe, Chandler and Tempe.

[JonGriffith]

If you're concerned about buying in a particular area, give me an idea of where you'd like to be and I'll create a market analysis of that area for you. The prices will continue to fall as along as the buyers sit on the fence, because the sellers will have no choice but to lower the price, but this will only last so long.

I think we're rounding out towards the bottom, but that should not be an indicator when deciding whether to buy or not. Right now homes are at bargain prices. Sure, the prices may continue to fall, but not that much. We're already at 2004 pricing and they aren't adding any more land in Arizona, so the prices will eventually return to a steady increase.

Home ownership is designed to be a long term investment, not a short term investment, so you need to be able to understand that there will be down times where your initial investment may be worth less than you originally put into it. This is normal.

Don't be one of those people who waits too long and then misses the opportunity because you purchased on the upswing. Always buy on the down-swing. That's where you get your discounts.

[JonGriffith]

Originally Posted by altus2006

Why don't you move into a rental that you can lease on a short term basis. You do not seem ready to take any risks on a house and the chance of losing some money (or a lot of money) on a house right now is great.

altus2006

Losses aren't incurred until you sell the asset. Real estate increases in value over time. Renting is a quick way to throw away hard earned money, but if you don't have the cashflow (which is always king) then you may have to rent.