Housing market in AZ seeks a bottom

[jimj]

Originally Posted by Boompa

New Houses are your enemy if you are a homeowner. How will values ever go up if the supply keeps increasing

Well, the new houses are selling for more than the shorts or auction properties so if you're a conventional sale I'd think your price would be pulled up near the new home price wouldn't you?

[vjsoto]

Originally Posted by jimj

Well, the new houses are selling for more than the shorts or auction properties so if you're a conventional sale I'd think your price would be pulled up near the new home price wouldn't you?

New house prices are falling to very low levels, and they are far more attractive to buyers than a 10 year old house that could already have some potential problems and repair expenses associated with it. Selling a used house on this market is best avoided unless absolutely necessary.

[Nanny Goat]

Originally Posted by vjsoto

New house prices are falling to very low levels, and they are far more attractive to buyers than a 10 year old house that could already have some potential problems and repair expenses associated with it. Selling a used house on this market is best avoided unless absolutely necessary.

There are a fair amount of people who like older homes. Me for one. They have a character that new ones just don't have. And, a lot of them were built better/appear stronger than what I call the "chicken wire" houses. And,mature landscaping. There isn't a one size fits all for everyone.

[khuntrevor]

Sacrificing location just to get a new house is a very common mistake. Casa Grande, Queen Creek, and Maricopa all come to mind.

[azriverfan.]

Doing your homework and examining your personal situation is more important when deciding whether to buy a home than following a trend of the market. Your decision will depend on the location, size, length of time, job security, and savings more than some general trend. That isn't to say that trends are not important but they are vastly overstated on this forum. There are many MLS search engines that you use for free so you don't need a realtor to research an area and gather data.

Remember that data, including quality data can be manipulated. Someone may quote a reputable source but if they manipulate that data to suit their particular view, it is still misleading. How do they manipulate it you might ask, for starters, they can select certain data and exclude other data that could disprove their point. The data they selected is factual but the data they excluded was also factual. They can then claim their opinion is supported by evidence and will insinuate their opinion is fact. In reality their opinons were biased because they excluded facts that could disprove their point and included only that subset that supported their particular opinion. This is why it is necessary that you do your own research and reach your own conclusions. For some of you, it may very well be an appropriate time to buy a home and for others it may not. Contrary to how I've been depicted, I'm not advocating one way or the other; the only thing I advocate is doing your homework and researching data relevant to your situation.

In general, it is difficult to comprehend how the bottom of the market has already been reached given the fact that
(1) There is still a surplus of homes including foreclosures and shortsales. Yes, it may be falling but there is still a significant number of foreclosures still present
(2) Jobs - unemployment is still high. It may be improving slightly but it's still high. There is still a lack of quality jobs and without jobs, people can't afford homes
(3) Poor credit - due to the economy, many people simply lack the credit to acquire loans to purchase homes. Yes, it may be improving but its difficult for people to acquire loans unlike the past.

Again, this doesn't mean you shouldn't buy a home now, it will depend on the factors listed in the first paragraph.