Rent it out until the market improves? (Queen Creek, Maricopa: days on market, jumbo loan)

[Beena]

That would have to be the most over-used phrase of 2007. Yes the market is going improve one day but you need to be really clear on what exactly "improved market" means. There will be a day when it will be easier to sell a house and we won't have 55,000 + single family residences in the MLS. However, if you are holding out for 2005 prices to return, I think you have a huge disappointment waiting for you. Easy financing is a thing of the past and 100% on stated income isn't likely to return for many many years in my opinion. Would love to hear other's thoughts on this. But with the demise of 100% financing we lost a huge percentage of the jumbo loan buyers. Plus the simple economic math of 2000 to 2005 simply does not work. Housing prices cannot triple if salaries did not triple.

The outlying areas of Maricopa county like Queen Creek and Good Year/Palm Valley may not see 2005 prices for the next 10 years. Yes the market will improve. Days on market will decrease. But so will prices. If I were going to sell...I would sell now because it will be worth less next year and even less the year after. Just my opinion based on the numbers I see.

[starchief5]

It's gonna be a long long time before we see 2005 prices again. It's gonna be a long long time until what caused this housing bubble is forgotten, regulation is tossed out, and loans are again made available to people who can't afford them. These were the buyers whose demand drove up the unsustainable prices. It will probably happen again someday but people like me (and many of you) will be dead and gone.