Special offer

Phoenix Real Estate Blog: Reading the Tea Leaves, Now May be the Time to Buy

By
Real Estate Agent with Sterling Fine Properties AZDRE# BR553129000

 

The Associated Press reported today that the gap between the monthly mortgage payment on a median-priced home and the median monthly rent has shrunk from a $777 difference three years ago to $221 today (in other words, today, monthly rent payments are, on average, $221 less than monthly mortgage payments).

That phenomenon, which is owed primarily to rising home affordability (not rising rents), combined with the $8,000 first-time homebuyer tax incentive, the usual mortgage interest tax deductions, and relatively low prices make Phoenix-area homes look mighty enticing to would-be buyers.

As more and more first-time buyers enter the market, though, we’re once again seeing bidding wars on those properties that combine desirability with a low price tag.  Yesterday morning, in an article titled “Low-priced foreclosures incite bidding wars,” Arizona Republic columnist Jonathan Cooper talked about how low prices for bank-owned properties are sparking bidding wars.

“Experts say the environment is strikingly similar to what they saw at the height of the real estate bubble.  ‘This market is about as abnormal as the hypermarket that we came out of a few years ago,’ said Jay Butler, director of the Realty Studies program at Arizona State University.”

As buyers snap up properties, the inventory of unsold homes in Greater Phoenix has fallen dramatically.  Today, about 32,000 homes are on the market in Maricopa County -- 30% fewer than in January.

What’s the message in all this?  Now may well be the time to buy -- get in while the gettin’s good.  If you’re looking to buy a home or investment property in the Phoenix area, check out the must-read article, Six Steps That Will Save You Thousands on Your Next Home.  And check out my last blog posts on investing in short sales and foreclosures.

What do you think?  Is now the time to buy Phoenix real estate? Click on the “Comments” link below and join the discussion!

 

Posted by

I specialize in selling Phoenix real estate -- Scottsdale homes and Phoenix homes, including Phoenix short sales and bank owned homes. To see my listings and learn more, visit www.MyPhoenixMLS.com.

MyPhoenixMLS Real Estate

 

Comments (0)