When 2009 first started off the Real Estate market had a mess that no one was willing to predict except for saying that there were going to be foreclosures, lots of foreclosures. Even a person that isn’t in the market on a daily basis like myself can predict foreclosures in a declining economic event that the US and world is experiencing.
The Real Estate market within the Phoenix/Scottsdale market during 2009 has, to say without a doubt, been an exciting year. If you want to purchase real estate it is truly a great time to buy. The homes under $150,000 are experiencing multiple offers and a true sellers market. The buyers who are able to buy are those that have cash or strong credit with a large percent to put down (10% to 20%). The Banks who are the typical sellers in this range have Asset Managers overseeing the transactions in hopes to receive the top dollar. They are impossible to be contacted by the Buyer’s representation; their Realtors just upload the offers into a computer system where they determine which offer they will accept. There appears, at times, that there is neither rhyme nor reason to why they accept one offer and reject another. To me it appears the closer to the end of the month if the Asset Manager has a huge number of units still on their table the chances of buying one is a bit better, they just want the units gone.
The $150,000 to $500,000 market is moving also not as active as the lower dollar but moving. Some of these homes are those that sold during the peak upwards to the $1,000,000 range, and have some very nice upgrades. Many of these are still attempting to Short Sell the home but this can be a very time consuming process however the reward if the Banks accept the offer can be tremendous.
The million dollar home market is ripe for good deals right now too. Homes that cost more to build are being marketed and sold for tremendously less. To many on the market to choose from, but if you have the time and the capital you can purchase 5,000 or more square feet for a great buy. There are custom home lots in several plush highend areas available for unheard of prices and, they too are seeing foreclosures.
The Foreclosure market is going to remain strong into 2010 and I really do not see our President Obama actually helping too many of those folks in the process of foreclosing being saved. It isn't to say theat he isn't doing anything for them they just don’t want to be saved, they have seen their homes devalue and all they can see is the loss. I try to remind people that when they buy an automobile they see a 30% devaluation as soon as they drive off the Car lot and that loss will never come back, at least with the home that they live in it does have a greater possibility in 3 to 5 years of gaining back the lost value.
If you don’t need to sell and you can afford the payments then why move? You still have the tax advantages of the home ownership tax deduction and with that alone you will be holding your own. Will you earn back what you claim that you have lost? If you mortgaged the home there shouldn’t be any problems, try to amortize your payments and the potential loss will be much less.
Oh but you say; if I let this one go back to bank I will be able to purchase more house for less money. Well not exactly. Since you will have a deficiency against you now you will be paying a higher interest rate and any savings that you think that you are gaining is going to be lost with the higher interest rate.
The Best bet, stay where you are at if you can afford the house payment. Try to buy another house if you want, but be advised that it will be a second home and you will be expected to have 20% in cash to make the purchase.
It is still a great Buyer’s Market, yes, cash is king but if you have a strong credit background and some Skin in the game (20% capital to put down) you can purchase with mortgaged money and get a great home at a great price.
Call me and we can discuss the market.
602-549-7994 DougFry@douglasfry.net www.DougFry.com
Saturday, December 12, 2009
Friday, February 13, 2009
Is It Time To Buy A Home?
I read this today and thought that I would pass it on to you.
Why to Buy a Home Now
by Phoebe Chongchua
If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter.
"He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.
The longer you rent, the longer it may take you to eventually get into homeownership.
If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".
***While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy.
But in order to make your purchase profitable, here are some things you should consider.
How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you.
How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.
Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates.
Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.
Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.
Tax credit benefit. Last summer, the federal government started providing up to a $7,500 tax credit to buyers who have not owned a home in at least three years; the tax credit must be repaid within 15 years. But that figure may increase. The National Home Builders Association and National Association of Realtors are pushing for more significant help for all home buyers -- not just those who are buying for the first time. The Senate, as part of a stimulus package, this month approved a temporary new tax credit to be applied to homebuyers' tax bills. The credit would give buyers 10 percent of the purchase price of any home, up to $15,000. Alan Zibel of the Associated Press writes, "Anyone who buys a home within a year of the bill's signature would qualify. To deter speculators, buyers must occupy the house as their main residence for at least two years." At the time of this writing, the stimulus package had not yet gone to the White House.Published:
February 13, 2009
Why to Buy a Home Now
by Phoebe Chongchua
If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter.
"He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.
The longer you rent, the longer it may take you to eventually get into homeownership.
If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal.According to a MarketWatch news article, buying a home now can provide some real negotiating power to request improvements, price reductions, help with closing costs, and more. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".
***While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy.
But in order to make your purchase profitable, here are some things you should consider.
How long will you be in the home? Some experts advise that if you are planning to move within a year, buying may not be the best option because of the expenses associated with moving. However, if you're searching for a place to live for, at least, several years, buying now could be a good choice for you.
How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.
Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates.
Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.
Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.
Tax credit benefit. Last summer, the federal government started providing up to a $7,500 tax credit to buyers who have not owned a home in at least three years; the tax credit must be repaid within 15 years. But that figure may increase. The National Home Builders Association and National Association of Realtors are pushing for more significant help for all home buyers -- not just those who are buying for the first time. The Senate, as part of a stimulus package, this month approved a temporary new tax credit to be applied to homebuyers' tax bills. The credit would give buyers 10 percent of the purchase price of any home, up to $15,000. Alan Zibel of the Associated Press writes, "Anyone who buys a home within a year of the bill's signature would qualify. To deter speculators, buyers must occupy the house as their main residence for at least two years." At the time of this writing, the stimulus package had not yet gone to the White House.Published:
February 13, 2009
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