Homes Ahwatukee - Phoenix - Buy! Don't Rent!!! - Trulia Rent vs. Buy Index
Trulia released their Q2 Affordability index this week. The Verdict for Phoenix residents was a resounding Buy! Don 't rent!
SAN FRANCISCO, April 28, 2011 – Trulia today released its Q2 2011 Rent vs. Buy Index, which compares the cost of buying and renting a two-bedroom apartment, condominium or townhouse in the 50 largest[1] U.S. cities. Since last quarter, buying a home has become.......... see more
In other related news, NAR predicted that it expects home prices to dip 1.8% this year and increase by 3.9% in 2012. Lawrence Yun, NAR chief economist stated: “Based on the current uptrend with very favorable affordability conditions, rising apartment rents and ongoing job creation, existing-home sales should rise around 5 to 10 percent this year with sales growth of lower priced homes likely to outperform high-end homes. That means the price trend will reflect more homes sold in the lower price ranges. … The good news is that recent home buyers are staying well within budget, leading to exceptionally low loan default rates among home buyers over the past two years.”
What does this mean for the Phoenix real estate market and more specifically for Ahwatukee Home Buyers?
The decline in housing prices is slowing this year and prices are predicted to increase by 3.9% in 2012. Trulia, a leading real estate industry observer clearly stated that it is better to buy than to rent in the Phoenix market. Interest rates at historic lows. Considering all of these factors, buyers who have a substantial down payment and can comfortably afford the payments, should buy before prices begin to rise.
Many qualified home buyers have been sitting on the sidelines and waiting for a clear sign the market is moving upward. If 2012 proves to be the year prices start to recover, this pent up demand is certain to propel Phoenix and Ahwatukee prices well beyond the 5% annual appreciation demonstrated in this market for at least ten years before the decline.
We predict that, when the market recovery commences, pent up demand will push the annual rate of appreciation into the 12% to 15% range. If you are a buyer trying to time the bottom of the market, it appears to be fast approaching.
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