It is a great time to buy!
If you are a typical new Arizona resident, you will find that inventories of existing homes are at an all-time high, while prices are 15-20% below recent historical peaks.
- "Conforming" loans are still available. Conforming loans includ VA and FHA loans and conventional loans with as little as 5% down payment. These loans do have maximum loan limits. At this time, the VA loan limit is $359,650. The FHA limit is $263,160 The conventional loan limit is $417,000.
- New home builders are offering great incentive at this time. DO NOT GO WITHOUT A REALTOR®! If you go the first time to a builder site, you CANNOT be represented. It costs you NOTHING to be represented by your own agent. The BUILDER PAYS US!
- Rental occupancy rates exceed 98%. That is a very high occupancy rate.
- Homes offered for rent today are very likely to be in danger of foreclosure. Many are homes bought with sub-prime loans in the speculative fever of the 2004-2005 seller's market. Many if not most were financed with questionable instrments like option ARMs 2/28 or 3/27 interest only loans now resetting into ARMs with exceedingly high interest premiums. No way are today's renters going to pay enough rent to subsidize the high mortgage payments on these. If you rent one of these you may find yourself living in a foreclosed property.
Do you want to "wait until the prices drop"?
Better think again. While there is a liquidity problem today in the sub-prime and Alt-A markets, there is no such problem in the conforming loan arena YET. Many people who were qualified for loans 2 weeks ago, no longer qualify, or have found the terms that they qualify for have changed drastically. If you will live in the home for the foreseeable future, better to buy now and enjoy the tax benefits and any future appreciation, than to wait and be excluded from future equity housing for you and your family.
For more information on homes in Sun City, Sun City West, El Mirage, Glendale, Peoria and Surprise that meet the "conforming" criteria, please see http://activerain.com/blogsview/176816/Can-I-get-a
Jim Little, Your Sun City Realtor
http://jclittle.com/
Ken Meade Realty
17001 N Del Webb Blvd
Sun City AZ 85373
800-877-1776
623-977-1776
By the way...if you know someone who is interested in buying or selling real estate in the Sun City Neighborhood, Peoria, Glendale or Surprise, please call me with their name and phone number. Thank you!
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About The Author As a full time agent with Ken Meade Realty a Sun City neighborhood Brokerage business, Jim utilizes his Marketing Degree and 35 years of Business and Real Estate experience in order to help clients with their primary residence and second home needs. He contributes to a daily Web Blog which focuses on the Sun City, Sun City West, Glendale, Peoria and Surprise Arizona Real Estate Market, as well as other topics important to those and neighboring communities. For more information on Jim and Ken Meade Realty, please visit his website at http://www.suncityneighborhood.com/
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Jim Little, Your Sun City Arizona Realtor
Jim, I appreciate this post. Especially #4 about the possibliity of the rental home being foreclosed, and the renter having to move all over again. I hadn't thought about that possibliity, but I'll use it in my marketing.
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I think a lot of buyers are thinking they're going to wait wait wait wait until the price is on the floor and then buy, but I think by the time they know what the floor is, it will have come and gone and they'll miss the window...