Confused and Planning to move to Phoenix area

[KRAMERCAT]

Originally Posted by Bertha64

I have been going to Phoenix area for the past 3 years because this is where I wanted to retire and own a home. This last trip has left me confused. The homes prices have gone up and up and now I am limited of where to buy. I never own a home. I live in California.

I have only a few places to buy - and I found some houses in Buckeye but reading about the water and sewer company has made me kind of scare. I will be in a fix income so I want to be able to live with my retirement.

I am not planning to get a pool but I was planning to get a spa. If I stay here, I will be paying for an apt that is dump because the rent in Southern California is outrages.

I have look in Goodyear but this last trip the builders were few, if any. I know next time they start building it will be higher and probably impossible to buy.

I am just not sure what to do about Buckeye and the water/sewer prices.

Bertha

Not sure why you would want to move so far out (Buckeye or Goodyear) if you have 240k to spend.

[stevek64]

Originally Posted by KRAMERCAT

Not sure why you would want to move so far out (Buckeye or Goodyear) if you have 240k to spend.

How about for starters....larger selection of newer homes, sometimes more home for the $, more new construction, like the "feel" of a place, less populated(at this point), enough shopping/restaurants to suit most, etc.

To each their own....

[pgc323]

Originally Posted by goodlife36

The prices of 2005 were inflated because anyone with a pulse could qualify for a home. Those prices weren't real. I guess we will have to agree to disagree.

Who are buying these $300,000 homes? Are they investors? retirees? dual income earners? high income buyers from other states? I am very curious.

Originally Posted by AZJoeD

It is not a bubble, it is simply returning to normal values. A bubble occurs when prices exceed value and people will pay any price for what they perceive as a limited product. 2005-2006 was a bubble. A severe market drop like the one that occurred in 2007-2008 in not normal. That is when the bubble burst.

It was unrealistic to think they were going to drop (bubble burst) and stay down forever. Once the economy picked up and foreclosures abated it returned to normal. Prices or demand has still has not appreciated to the point it was at 2005. Phoenix has always been both a high growth area and at the same time a wildly up and down market. How much higher will it go? No one knows. Will it drop again? No one knows.

You could be an optimist and consider the glass half full or a pessimist and consider it half empty. Your choice.

I agree with AZJoeD. The market is returning to normal values.

And investors are not buying $300,000 homes. Investors started backing away once SF homes went beyond $150,000.

[Steve Pickering]

My Ex bought three never lived in homes in Eloy area for $60,000 each two years ago. They are now worth $120,000 each, and were built to sell for $260,000. My last trip there were a lot of $120,000 to $160,000 homes in Coolidge, Florence, and Casa Grande. Many of them nearly new or brand new.

[goodlife36]

Originally Posted by pgc323

I agree with AZJoeD. The market is returning to normal values.

And investors are not buying $300,000 homes. Investors started backing away once SF homes went beyond $150,000.

The statement you made about the investors make sense. However, I would not feel comfortable purchasing a home that appreciated by $100,000 in three years. What is wrong with Chandler and Gilbert? The homes are priced in the OPs range. I saw one that was really nice in Gilbert and the crime rate is super low. The taxes are low too.

[hikernut]

Make sure you leave enough in your budget for repairs and maintenance. You mentioned that you haven't owned a home, so ask around for opinions on this.

I'm not familiar with the west side, but in Gilbert, Chandler, Ahwatukee, I see plenty of houses listed at 250,000 or less that would make fine retirement homes. Houses that are 1400 to about 2000 square feet, and anywhere from a few years old to 20 or more. Older neighborhoods are more likely to have lower HOA fees, or even none. Find out what utilities, taxes, and insurance will cost before you buy.

I see you are feeling pressed to buy something, but be patient and do the homework. Getting into a house you don't like or can't afford is stressful, and selling a house is expensive.

Regards,

hikernut

[Bertha64]

I guess I feel stress because they have gone up so much and I feel I will never have the American dream of owning. If I could have swing rent and a mortgage 3 years ago, I would have jump on it but I couldn't.

I will check on the areas you have mention hikernut to see I can find anything in those areas. I thought they were so high when I look 3 years ago.

[azdr0710]

Originally Posted by Bertha64

I thought they were so high when I look 3 years ago.

oh.....well, maybe this isn't going to work.....

the bottom of the real estate market in Phx was very quick and sharp about late fall of 2011 with fairly steady appreciation since

[AZJoeD]

Hi Bertha64,

I have been following your post and understand your frustration. But, I think you may be trying to swim upstream. It is very difficult to come here for 3 or 4 days and drive around the valley hoping to find what you are looking for. You need to set your criteria, search for homes, research the areas, then plan to visit the best ones. There are many small developments or smaller builders that may fit your needs and the larger builders like Taylor-Morrison and Pulte are opening new developments all the time. Here are just some examples of new homes that may fit your needs that I found with a quick search.

West Valley New Homes

Also, I think you should consider getting pre-approved through a mortgage company before you walk into the builders sales office. You will have a better idea of what you are qualified for, what your costs will be and the type of program that suits you best. Then you can compare what the builder has to this lender. You are never required to use the builders lender and should choose that only if they are giving you a better deal (as soon as they find out you have your own lender they will match the deal).

Feel free to contact me with questions if I can help.