Here’s a question we hear all the time:
Is now a good time to buy a house in Phoenix?
Let’s see what a few other real estate agents in Phoenix had to say about this very question recently on Trulia Voices ”“ a real estate “Q&A” forum.
. . . I have to tell you that we haven’t see buying opportunities like this in many years.
I have to agree, now is an excellent time to buy.
If you want a good hedge on inflation now would be a great time to invest.
There are awesome values in Phoenix area right now!
This is the best time in AZ history to buy a home.
Now is the best time to buy in Phoenix, prices are way bellow (sic)replacement values. . .
And from the National Association of Realtors themselves comes all sorts of material available to Realtors in the (ridiculous) “It’s a Great Time to Buy!” campaign (search realtor.org for “It’s a great time to buy” and you get 2,720 results”¦).
So, is it a great time to buy a Phoenix home?
I answered this question a little over a year ago. My answer hasn’t changed.
Maybe, maybe not.
Yes, interest rates are at historical lows. (and yes, I need to update these charts)
Yes, there are a ton of homes in Phoenix to chose from. A “ton” is defined here as the 38,237 single family homes currently listed in the Arizona Regional Multiple Listing Service (ARMLS). Throw in condos, multi-family units and land and there are over 52,000 choices.
Yes, there is a new $8,000 refundable tax credit available for first time home buyers.
But whether it is a good time for YOU to buy depends on many factors such as:
- Your financial situation.
- Your personal situation.
- How long you intend to stay in the home if you’re going to occupy it.
- Your risk tolerance if you are looking at investment property.
- The location of the home you would like to buy.
- The condition of the home you would like to buy.
- And more. Much more.
Are there “deals” out there to be had? Yes, there are.
Is every home listed in Phoenix a “deal”? Absolutely not.
Are there realistic and “motivated sellers”? Yes. But clearly not all sellers are realistic or motivated.
Are there unrealistic sellers? Yep. But not all sellers are unrealistic. (and trust me, there are also plenty of unrealistic buyers too.)
Are foreclosures and short sales a great deal? Maybe, maybe not. Depends.
Will prices continue to decline in the Phoenix market? Maybe, maybe not. I’ll go out on a limb and say “Generally speaking, probably.” We still have far too much inventory ”“ in most locations. There are location pockets that are in what is generally considered a “neutral market” (loosely defined as six months of available inventory).
So while much of the Phoenix area market is a “buyer’s market”, that does not necessarily mean this is the right time for anyone to buy a home.
Is it the right time for you to buy a home?
Maybe, maybe not. Talk with professionals ”“ a real estate agent, a CPA/Financial planner, a mortgage lender for help in determining your options and what is right for you in your specific situation. Everyone is different.
Photo Credit: ”“bast- on Flickr