Will Phoenix Housing Price continue to drop? (Buckeye, Congress: renting, loans)

[NiceJohn]

Thinking about to buy a house. But I am worried that price will go down some more. What you think? Another subprime loan peak will come? When the Phoenix housing will see the bottom? Thank you!

[Stumblina]

Hmmm....let me get my crystal ball out. I think your guess is as good as anyone else's!!!

[altus2006]

Check out "Liar Loans" on the web. I read something recently discussing the fact that these loans are going to be foreclosing at a higher rate than the current subprime loans because there are a lot more of these loans out there than sub prime loans which started the downward spiral.

Also, watch and see what new financial debacle Congress is getting us into with their new bailout programs for everybody and everything on the planet. You might not have enough $$$ for shelter for yourself after Congress gets finished with all the bad loans we have to pay back.

altus2006

[ArizonaBear]

Strictly speaking: yes; housing prices will continue to drop for about another 6-12 months but not at the 27% rate from August 2007-August 2008--------more like an additional 10% decline then things (should) start picking up.

[NiceJohn]

Thanks for the reply. If I see a house I really like, I am gonna do a 10% price cut. Otherwise, I take off. It is just too risky to buy a house now.

[foma]

My guess is it will get worse before it gets better. I don't think there will be any dramatic drops but I guess that also depends on the area you plan to buy a house. For example, let's take Buckeye. We're renting here right now and homeowners can't even sell their own homes yet builders are still building. I just don't get it.

I can't give a time frame or percentage but I'm in the same boat as you. We've bucked down to next summer, no matter what. I say if u r ready, go for it and if you can wait a few months, save up for a bigger down payment. You are going to need it when you go ask for a loan nowadays that's for sure!

[NiceJohn]

My plan now, I will cut down the price about 10% whenever I see a house we like. 10% drop according to online expert.

[NiceJohn]

Any advice?

[foma]

I thought I heard somewhere that a good strategy is 10-20% of what you are willing to pay. I think it boils down to what you are willing to offer, the price you are comfortable with paying and the area you want to buy the house. If it is a highly sought out area, you can still "low ball" but you may not be as successful. Home prices are never final until you sign the papers.

[altus2006]

Originally Posted by NiceJohn

Any advice?

You would be better off finding a Realtor to help with comps for the area that you are interested in living. It is better to have a somewhat educated (market educated) opinion than just replies from a bunch of people that have no idea what you should be offering.

What I have been doing, since we are looking for a house, is finding the "average" price per sq ft in the area. Those houses which are too high (in my judgment) are avoided because I am not into low balling people. I expect their Realtor to put the house on the market at a price comparable to others in the area and if it is way above the average, I am not interested in looking at it.

In this market, I am not going to overpay for a property, no matter how good it looks.

altus2006