Phoenix real estate market is white hot (Mesa, Chandler: home equity, house prices)

[Taynxtlvl]

Originally Posted by FirebirdCamaro1220

How about those of us who do work and keep increasing our income, but the goal posts keep getting moved? I now earn more than I ever have, but housing prices here have outpaced wage growth, so I'm stuck renting. 5 years ago, I could have afforded to buy (if I had my 2020 income), problem was I was making just over half what I am now then. So I've almost doubled my income, but house prices have gone up 70 to 80% in the same period of time, so I'm no closer to being able to purchase. It blows

Great post this problem is taking lots of people out of the house hunting game especially those without dual incomes and especially the millennials who in decades past would be in prime space and time to buy a home. Buying a home that's 1) not super far from the city center as in like an hours drive or more OR 2) not super old construction year is becoming increasingly difficult in most of the metro areas that one who is age 20 to 55 or so would want to live. The problem is that the home increases are happening so shockingly fast. Phoenix was rock bottom 10 years ago after the last recession but stuff has changed quickly. The Californians (and others mostly from the northeast) who are selling high after decades of appreciation are buying properties for straight cash in a lot of the formerly affordable and desirable metros. Phoenix, the Carolina, Florida (Especially Texas, and even there especially Austin and Dallas), Denver, SLC folks simply cannot compete with that. And it's all happened within the last 10 years which is super quick even when you increase or even double your income. I've given it up and am tiny house shopping. On the flip side people who bought and held on to their properties for the last decade are winning! You might consider a fixer upper or alternatively a condo, townhome or container home.

[john3232]

[quote=Taynxtlvl;59575472]Great post this problem is taking lots of people out of the house hunting game especially those without dual incomes and especially the millennials who in decades past would be in prime space and time to buy a home. Buying a home that's 1) not super far from the city center as in like an hours drive or more OR 2) not super old construction year is becoming increasingly difficult in most of the metro areas that one who is age 20 to 55 or so would want to live. The problem is that the home increases are happening so shockingly fast. Phoenix was rock bottom 10 years ago after the last recession but stuff has changed quickly. The Californians (and others mostly from the northeast) who are selling high after decades of appreciation are buying properties for straight cash in a lot of the formerly affordable and desirable metros. Phoenix, the Carolina, Florida (Especially Texas, and even there especially Austin and Dallas), Denver, SLC folks simply cannot compete with that. And it's all happened within the last 10 years which is super quick even when you increase or even double your income. I've given it up and am tiny house shopping. On the flip side people who bought and held on to their properties for the last decade are winning! You might consider a fixer upper [/b]or alternatively a condo, townhome or container home.


Buyers aren't going to see those prices or anything remotely close unless we experience a similar crash. My suggestion would be to look for homes in areas that are up and coming. Find out what you need to pre-qualify for a loan. Work on your credit score. If you want to nab a good deal you'll have to constantly be looking and ready to move.

My feeling is companies will continue moving here as will people from neighboring states like Cal.

One of my renters in East Mesa works in Scottsdale and has no choice but to commute. The woman and her husband were living in Scottsdale. Not an upscale area but fairly close to work.

However, when the 3 bed 2 bath 1200 sq ft rental property they were living hit $1750 a month it was time to move.

[hikernut]

One problem is that hot markets tend to attract speculators. This was certainly the case in the last hot market in Phoenix metro.

The price of empty residential lots (if a person can find one) in our neck of the woods have tripled since we were shopping, in 2011-2012. The house directly behind us just went under contract for 20% more than the owners paid just two years ago. Will we see another runup like 2004-2006? Only time will tell.

[JGMotorsport64]

Originally Posted by asufan

Bingo. Coronado is a historic district which as you know means inflated prices. A similar house to the $270k house in Coronado may have been selling for $210k a mile or two away, or you start with a townhouse. The fact is you were paying something in 2015 towards housing and I can assure you many properties could have been purchased for the same monthly payment, it just may not be the ideal location or property type. Start somewhere to get to where you want to go.

$210k? Maybe in Maryvale

[asufan]

Originally Posted by JGMotorsport64

$210k? Maybe in Maryvale

In 2015, I can guarantee there was housing stock sub $210k within 2 miles of Coronado. Or like I said start with a townhouse.

[wilberry]

town house HOA fee brings the total up to a small house , problem will remain unless people make enough to save a down payment and qualiify , pre construction areas are about the only deal one can afford with a low down. People will need two incomes ( husband wife ) to quailify , for most average working people with two incomes of about 50k a piece.

[patrick85395]

Originally Posted by Maroon197

That’s a horrible, selfish “I got mine” take that just reinforces exactly what I’m talking about. Home ownership has been held up as a hallmark of basic American life for generations. Telling people to now go screw because the wealthy have decided to turn family housing into an exclusive asset class for the rich is asking for trouble and upheaval. Housing costs less in rural Alabama because there aren’t jobs there. Workers deserve to be able to afford to live where they are working. That’s a basic tenet of a functional society.

I don't understand the criticism. It's called Capitalism, the true great American hallmark, and my job is to exploit it. I, for one, am proud of being a money-grubbing Capitalist. I grew up flat broke in a house that birds flew into and crapped inside the house. I that decided that I didn't like it. 401(k)s and the stock market casino never worked for me and held too much control over my money. People are entitled to nothing except what they can pay for with money they earned or inherited. If you don't have what you want, then work harder. Some people have other priorities/distractions like raising kids (I have none), cars (mine is 11 years old), or vices like drugs and alcohol---I prefer property that pays me. I've taken extreme risks and emptied my 401(k) to buy real estate and learned that it pays better and provides a lifestyle that I would otherwise not be able to have. It's not horrible, it's just how I pay my bills.

[john3232]

Originally Posted by patrick85395

I don't understand the criticism. It's called Capitalism, the true great American hallmark, and my job is to exploit it. I, for one, am proud of being a money-grubbing Capitalist. I grew up flat broke in a house that birds flew into and crapped inside the house. I that decided that I didn't like it. 401(k)s and the stock market casino never worked for me and held too much control over my money. People are entitled to nothing except what they can pay for with money they earned or inherited. If you don't have what you want, then work harder. Some people have other priorities/distractions like raising kids (I have none), cars (mine is 11 years old), or vices like drugs and alcohol---I prefer property that pays me. I've taken extreme risks and emptied my 401(k) to buy real estate and learned that it pays better and provides a lifestyle that I would otherwise not be able to have. It's not horrible, it's just how I pay my bills.

As a landlord the biggest problem I see with applicants is poor credit. Which isn't necessarily because they don't pay their bills but because they've got too much debt. I was floored to read credit reports which show applicants with 10 grand or more in credit card debt. Another 10-15 grand in car payments. And say another 2- 3 in miscellaneous debt.

I look at these people and don't get it. Why are they driving a 32 grand RAM truck on the salary they make? Why do they have a 55 inch flatbed TV in the kitchen as well as the living room?

If you want to buy a house the first thing you need to do get your credit score up and save money.

Often this starts with buying only what you can afford and cut way back on the credit cards.

It's not rocket science.

[CAHLUV]

Originally Posted by john3232

As a landlord the biggest problem I see with applicants is poor credit. Which isn't necessarily because they don't pay their bills but because they've got too much debt. I was floored to read credit reports which show applicants with 10 grand or more in credit card debt. Another 10-15 grand in car payments. And say another 2- 3 in miscellaneous debt.

I look at these people and don't get it. Why are they driving a 32 grand RAM truck on the salary they make? Why do they have a 55 inch flatbed TV in the kitchen as well as the living room?

If you want to buy a house the first thing you need to do get your credit score up and save money.

Often this starts with buying only what you can afford and cut way back on the credit cards.

It's not rocket science.

The conditioned mindset of consuming when you don't have the money. Life decisions matter and are no joke.

[Valley Native]

Originally Posted by john3232

As a landlord the biggest problem I see with applicants is poor credit. Which isn't necessarily because they don't pay their bills but because they've got too much debt. I was floored to read credit reports which show applicants with 10 grand or more in credit card debt. Another 10-15 grand in car payments. And say another 2- 3 in miscellaneous debt.

I look at these people and don't get it. Why are they driving a 32 grand RAM truck on the salary they make? Why do they have a 55 inch flatbed TV in the kitchen as well as the living room?

If you want to buy a house the first thing you need to do get your credit score up and save money.

Often this starts with buying only what you can afford and cut way back on the credit cards.

It's not rocket science.

Absolutely! Keep in mind that a lot of this is because many people think they're entitled to have 3,000 s.f. houses with pools, brand new vehicles, big screen TVs, the latest smart phones and/or all the other "smart" technology, etc. They certainly couldn't begin to afford these things on their own without the privilege of credit. It all goes back to that self absorbed entitlement attitude where they want something for doing nothing.