do you think its a good time to buy in maricopa(city)? (Phoenix: for sale, real estate market)

[Vinny536]

After some careful consideration i am thinking about buying a home in maricopa. I have been renting waiting for the bust, and then waiting for the lowest point, and personally i think its close if not there. home sales are actually up in maricopa, interest rates are super low and i like the direction maricopa is heading.

Does anyone have any thought on if now is a decent time, or if the market still has a long way to the bottom? ideally i would like to be able to get out of this house and into another in 5-7 years.

[arun196]

Interest rates were at their lowest couple weeks back. I dont think you will see mortgage rates that low anytime soon. So, theres a missed opportunity. Home prices are still low, I would say but it now, before you miss that opportunity too.

*** Buy when people are selling, sell when people are buying.
** Buy low, sell high.

Again, it also depends on how your finances are doing.
*** Can you pay monthly mortgage comfortably.
** Buy vs Rent
* How old are you.

[Vinny536]

Originally Posted by arun196

Interest rates were at their lowest couple weeks back. I dont think you will see mortgage rates that low anytime soon. So, theres a missed opportunity. Home prices are still low, I would say but it now, before you miss that opportunity too.

*** Buy when people are selling, sell when people are buying.
** Buy low, sell high.

Again, it also depends on how your finances are doing.
*** Can you pay monthly mortgage comfortably.
** Buy vs Rent
* How old are you.

your buy/sell analogy is my exact thought too....

the mortgage is what we are paying in rent now, including taxes, HOA fees, insurance and all the other goodies. so we will be just fine there.

i feel that if i rent another year i may miss a stellar opportunity, or i can say "whew!, glad i didn't buy last year!" depends how the market goes.

I'm 27, soon to be wife is 24.

anyone have their crystal ball handy?

[altus2006]

You could drive the streets and see how many homes are sitting vacant. Prices will still come down more if there are a lot of vacancies, especially if they have been sitting unsold for a long time.

Also, check out some of the new home sales offices. If you are offered a deep discount to purchase, it is an indicator that homes are not selling and prices may come down more.

I am not into the idea that we should buy when the loan interest rates drop below such and such level if the houses are still overpriced. People have to move every year due to divorce, job transfer, deaths, etc. and it makes more sense to me to have a house that is easier to sell if necessary. Paying too much for a home can mean a person will sit with it for years until it gets in line with others in the community, which might have sold for tens of thousands less than what you paid when the "rates were low".

altus2006

[mhstpt]

As a former president of the City of Maricopa Chamber of Commerce and an accountant who has served the area, I believe I have some perspective on this question. The question, of course, might be posed by anyone for any location in the country and elicit similar responses.

Answering generically, one must say the glut in the real estate market is still present. The inventory of housing, particularly new construction, is such that buying in an emerging city like Maricopa (the City was incorporated in October of 2003) presents something of an opportunity. While it less than clear that home prices have hit absolute bottom, they certainly are flirting with that level. The axiom "Buy low and sell high" is both a truism and a valid investment strategy.

The fact is, though, that the city is land-locked with severely limited ingress and egress (a way in and out). Variously known as John Wayne Parkway, Maricopa Road and Route 347, the main route in and out of town to and from Phoenix is heavily traveled and, at present, limited to two lanes in either direction. A minor collision, let alone a massive rollover fatality will doom the flow of cars for up to four hours. Recently, the road was re-surfaced and signal lights were installed. The resulting congestion was maddening and added hours to residents' daily commute.

Conversely, a partial resolution appears promising for the near term. Major highways are contemplated. Route 347 is scheduled for widening to 3-laes in either direction. Additionally, major outlets are setting stakes in the area including Home Depot, Wal-Mart Superstore as well as a major mall planned for the area near the Harrah's Ak-Chin Casino just south of town.

I am generally bullish on the city. have purchased two homes that I have rented to wonderful tenants. The homes were purchased at a fraction of their original selling price when first built. Undoubtedly, I will be in a position to realize significant appreciation within a few years -- but not one or two. For someone to succeed here, you have to be prepared to dig in for the long haul. Expecting to buy a home on a shoestring with only the barest hopes of securing employment in the vicinity will all but doom you to failure.

There is a real opportunity to be had, but be prepared opr otherwise you will be had.

[Master Shake]

Originally Posted by 61scout80

After some careful consideration i am thinking about buying a home in maricopa. I have been renting waiting for the bust, and then waiting for the lowest point, and personally i think its close if not there. home sales are actually up in maricopa, interest rates are super low and i like the direction maricopa is heading.

Does anyone have any thought on if now is a decent time, or if the market still has a long way to the bottom? ideally i would like to be able to get out of this house and into another in 5-7 years.

Do you work or currently live in Maricopa? If not, I would suggest you continue to wait and/or look elsewhere. The rush hour(s) commute out of Maricopa into the Phoenix area is still very bad and will only get worse as more people move to Maricopa.

This and the current availability of shopping/dining/commercial businesses are the biggest concern most people in Maricopa have, so if it doesn't apply to you, then Maricopa could be a great opportunity. However, I doubt home prices will ever skyrocket so quickly again -- meaning, you will more than likely be able to see a long term trend with plenty of time to act on it.

[abmiku]

Prices are still coming down....Look at how many are for sale out there....it's ridiculous...Of course home sales are up...everyone out there is selling.

[IMoveU]

Don't forget that your mortgage interest can be deducted from your income...if you are not totally maxed out from a cash-flow perspective and can afford maybe a couple of hundred bucks a month more out of pocket, you might even be able to afford something closer in that will begin appreciating much sooner than Maricopa...AND if you consider where the price of gas is going, it might actually be a wash for your monthly expenses.


So, Maricopa...lower price, much longer correction period (beyond 3 years, I think with some ups and downs), much higher gas costs and a murderous commute outta there.

East Valley, Inside the 202/60/I-10 loop...higher price, shorter correction period (within a year avg and already near bottom in So. Tempe and other desireable areas), much lower gas costs and better quality of life/commute.

I think when you pencil it out...it makes sense to stay up here, but unfortunately people will see the newer homes all decked out with granite, swimming pools, etc., and succumb to luxury which in the end, will bury them. Be strong!! :-)

[Ponderosa]

Whether to live in Maricopa or not is your decision, but the price of NEW homes there is about as low as it is going to get on the "loss leaders" that they offer. When you see small builders going bankrupt as a couple recently have that is a good indication we are near bottom. They lose money if they drop prices lower and they lack cash to hold on. The key though is to buy the base model and not a bunch of upgrades along with it. If you can resist upgrading your downgraded home at exorbitant builder prices you can get a good deal.

[MotleyCrew]

We were just down in Maricopa visiting our daughter and SIL. We saw signs for new homes for as low as $90,000 and most of the signs were around $120,000. I find it hard to believe that prices will drop below these figures given the cost of land. There is new commercial growth under way and we drove by the new Home Depot site that is now in construction. It will be a very nice city with all the shopping you need.