Look at Those Prices!
In 2004 people around these parts (that's the Phoenix metro area for anyone new to this blog) found that there was an abundance of homes from which to choose.
Houses were affordable and the selection was tremendous.
Then came the boom. For the next two years the affordable selection dwindled.
What do I mean by affordable?
Affordability has a nuanced meaning. For you, it means anything that fits your budget. For the market it includes any home that the average resident can afford.
When the average home buyer is able to purchase the average home the market is at equilibrium. When the average home's price is too expensive for the average home buyer corrections tend to follow.
Welcome to the correction.
For the home seller- this is not great news. Such times encourage lower sales prices.
In Arizona home sales have been maintaining or rising over the past few months. Homes are selling at prices lower than the past few years. Though this may be of concern to sellers it's welcome news to the buyers.
Houses have become affordable again. This is not just true in Arizona; it's part of a larger trend. If you're on-the-fence, it's time to take a look. Here are some of the perks of buying in the next month.
- A variety of loans that offer low rates and low down payments.
- Builder incentives for new construction.
- Federal government tax incentives.
Would you like to know more? Give me a call.
Chuck Willman - Gentry Realty - 480.292.0600
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Affordability is one key factor that is springing the lock on market turnaround. When Average Joe can't afford a home, there is a significant part of the population shut out of the mix.