Would you buy now - Gilbert (Phoenix, Surprise: for sale, renters, refinance)

[sheena]

Originally Posted by Stacey Graninger

There is never a better time that the end of the year to purchase a new build from a builder. The builders do not want to carry spec homes into the year and most if not all are offering amazing incentives for spec homes purchased before the end of the year.


There is a new community in the Southeast Valley, near Gilbert, called Encanterra. It is built by Shea Homes and they had their grand opening a few weeks back. They are offering jaw-dropping incentives and it may be worth visiting their website.

If you are planning to live in the home for the next 3-5 years, the best time to purchase a home is the last week in December.

I am a realtor and have been a resident of Arizona for 30 years. If I can help, let me know.

What are the builders offering the Realtors these days? When I left last Winter I'd seen it up to 10%

[jendestefano]

[color=black]Wow - Okay speculators lots of advice and rumors. truth is no one knows and it's literally street by street. Some areas such as north Scottsdale and the $3 million market are still appreciating. Other areas are still dropping. Gilbert is more affluent and land locked then say Queen Creek so it is going to behave differently. And all this speculation that next year is going to better is just that - speculation. The problem is not demand right now. You are right, Phoenix is growing very fast. The problem is the secondary mortgage market. Investors don't have faith in us borrowers and the money funding loans is quickly drying up. Without the Bank of America's and Meryl Lynchs of the world, there is little money to support mortgages, especially for those homes classified as jumbo loans (above $417 loan or about $525 purchase price). Until the money comes back (which it's not, banks are still shutting down) - good luck. And no the Feds are not going to bail us out, they can't afford their own debts (social security). So - NOW IS THE BEST TIME TO BUY!!!! Why, there will be less money for mortgages in the future, foreclosures are up so sellers are desperate and rates are tumbling down so mortgages (if you qualify) are affordable. DON'T WAIT ESPECIALLY if you are not a perfect borrower. Your chance to even qualify for a home could be gone in a month, a week, or a day, or an hour - no JOKE!! Values will increase over time because demand increases everyday as Phoenix grows. I have lived out here since 1989 - a horrible time for the Phoenix RE market. It didn't last - look at 2005. But it didn't turn around overnight either. This is temporary too. Moderator Cut

[averykiss]

Someone who I know has two paths to take:
1. Fixer-uppers if you want to raise equity.
2. New homes if you don't want to.
The market is diplimished now, so it doesn't look like it is going to get very much lower. You don't want to wait to long. Not long ago the market was booming, and you could sell your house for alot. Some waited to long, and lost out.

[Captain Bill]

Originally Posted by sheena

What are the builders offering the Realtors these days? When I left last Winter I'd seen it up to 10%

It varys from builder to builder and almost from day to day.

Bill

[KarlaT2]

[quote=WASHINGTON DC HOME SELLER;1713092][color=black]
Do you remember the old HOUSING INCOME FORMULA? THREE TIMES YOUR INCOME AND 20% DOWN!!!
QUOTE]


Can someone elaborate on that more please? Is that 3 times your income before taxes, or after? And is it the actual amount borrowed which is 3X your income, or the cost of the house before you put money down? I've always wondered that. So, if a person makes 50K a year before taxes they should only buy a house up to 150K regardless of how much they have for down payment? Or if they have 100K down payment they can buy a 250K house since they are only borrowing 150? Help me understand this rule please. LOL. Thanks

[sierraAZ]

[quote=KarlaT2;1968217]

Originally Posted by WASHINGTON DC HOME SELLER

[color=black]
Do you remember the old HOUSING INCOME FORMULA? THREE TIMES YOUR INCOME AND 20% DOWN!!!
QUOTE]


Can someone elaborate on that more please? Is that 3 times your income before taxes, or after? And is it the actual amount borrowed which is 3X your income, or the cost of the house before you put money down? I've always wondered that. So, if a person makes 50K a year before taxes they should only buy a house up to 150K regardless of how much they have for down payment? Or if they have 100K down payment they can buy a 250K house since they are only borrowing 150? Help me understand this rule please. LOL. Thanks

I've wondered about that, too. In discussions on other sites the consensus seems to be that this "multiplication rule" involves the amount of the loan and the gross income.

[azjack]

"DON'T WAIT ESPECIALLY if you are not a perfect borrower. Your chance to even qualify for a home could be gone in a month, a week, or a day, or an hour - no JOKE!! Values will increase over time because demand increases everyday as Phoenix grows. "

Huh?

So fewer and fewer people will be able to obtain house loans, and yet house prices will still go up. Who will be buying all of these houses without mortgages? Are there 50,000 cash buyers waiting in the wings?

[Beena]

AzJack - Funny!!! I was wondering the same thing. Unless we have 50,000 cash buyers waiting in the wings it looks to me like prices are a-headed down and smart money says don't buy now. Anything else might be realtor speak.

[SMG]

Well, I am a Realtor so you will probably consider this "Realtor speak"...so be it.
It is entirely possible and even probable that lending requirements will tighten up. Buyers may be required to have more of a down payment, a bertter job history, a higher credit score and on and on. In that sense, it may not be wise to wait much longer and try to time things. Many of my clients are folks looking for a place to hang there hat for the next few years. They want a home to call their own and there are more out there now than even before. There are excellent buys in every corner of town. For a young family that is interested in staying put for a few years, this is an excellent time to buy as they may have difficulty qualifying later.
If people are trying to time things, wait it out, etc...good luck. It is not always an easy thing to do. For those that are looking for a new home, its really a pretty good time for buyers.

[azjack]

Originally Posted by Boatdrinks

No one said you need "housedebtorship" to live. If you like renting and throwing your money out the window without any return, more power to you.

Yes, renting is throwing money out of the window. We all know those National Association of Realtors' talking points. It is always a great time to buy, etc.

Originally Posted by Boatdrinks

As well, not all homes are a "declining asset." If you're smart when you buy and pick a good location/house/lot, you will more then likely be fine over the long term. Real estate, in this market, is a long term investment.

Yes, all houses in metro Phoenix are declining in value. I am smart, that is why I sold my house before it declined $75,000 and counting.

Originally Posted by Boatdrinks

And yes, actually, those tax breaks are "amazing." How much money did you save on your taxes renting last year???? And how much equity do you have now????"

I did make thousands of dollars in interest on the "equity" that would have vanished from '05 to '07. But you are right, I did not pay a bank interest so that I could pay less in taxes. The bank paid me interest, thus increasing my taxable income. I have to tell you, it is pretty rough.

Originally Posted by Boatdrinks

As for waiting for another year - I completely disagree. Yes, it may pay off, but it also might not. Unless you have some magical crystal ball that tells you for sure that buying a home now will cost more then waiting a year and renting during that period, you're wrong..

I do not have a crystal ball. I simply read and learn from history. Instead of spouting NAR slogans, I use reason.

Originally Posted by Boatdrinks

Oh, and as far as an $800 rental house - I would imagine that it's extremely small, doesn't have a pool and probably not a very large backyard. If that works for you, fine. But it definitely would NOT work for people with a few kids, especially for the long term..

It is just awful. It is so tiny that I barely get through the door. Actually, it is larger than the house that I sold, and there is ample room. There is no swimming pool. Of course, there are house rentals with pools if that is your thing. Maybe I should have paid the $950/month that they were asking so as to impress the Realtor elite. BTW, how are those families with kids enjoying the stability of foreclosures in their lives, or in the lives of neighbors around them?