Phoenix Real Estate Home Values are Comming Back. Hang in there! Its getting better for Phoenix - Fast.

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Services for Real Estate Pros

Where is the Real Estate Market Trending or Heading? To look forward, we must look at where we were in the past. See the following graph. (For a high resolution PDF version click here www.BigDaddyDennis.com.)

It appears from the graph of Phoenix House Values below, that the real estate market in the Phoenix area is heading for a new low. After months of decline it appears that we hit bottom and the Phoenix Home Values are heading up again. After a short upward movement, due to the federal tax credit, the trend is headed down again. Are we headed down to a new low? Is it time to buy real estate again? How long will it take for Phoenix Home Values to come back to normal? Should I get out of the market and wait? These are hard questions to answer but here are Big Daddy Dennis’s predictions and recommendations for Phoenix Home Values:

  1. Home values Phoenix and other areas will not return to the trend line for another 2-3 years. The initial upturn in values are due to the USA first time home buyer tax credit. This expired in December 2009, and the market continued to fall. Keep your home if possible.  Are the Phoenix Home Values comming back?
  2. Do whatever it takes to keep the current home.
  3. Do a loan modification? Its possible but there are very few who are successful.
  4. If you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for 5-7 years, maybe even never again!
  5. Inflation will come back and the value of the dollar will drop dramatically. (This could change if the USA will cut spending and raise taxes, cut medical/social security, and increase the tax rate by 45%. I don't think this will happen.)
  6. The amount of debt in the USA will continue to grow. The amount is very frightening. In 5-7 years, it will cost $10 to buy a loaf of bread. Gasoline will cost $25/gallon. And the average starter home price will be $600,000.
  7. Get out of debt; get rid of the credit cards and pay them off. Purchase only if you have the cash. Do not get into any debt. (I sound like your mother here, but she was correct.)
  8. Start a side business. It’s too difficult to explain here why, but the best reason is the potential tax advantage and the possible income. Your own side business is the LAST area the government has yet to attack. Make it simple and get going. An extra $400 per month really helps.

If you are able, purchase quality single family homes in a good area and turn them into rental units. (Your side business?)

I’ve talked to a lot of people who feel that they can ‘let their home go and rent for awhile’. Rental rates are lower than their mortgage rates. Yes, they are! ‘We can save a lot of money by renting vs. paying the mortgage, and in 2 years we can purchase again and have a good down payment.’ Well, it’s actually going to be 5-7 years before your credit report looks good to purchase a home again. And can you really save the money? Most people will spend the money on toys. If hyper inflation hits, like some economist predict, then you’ll be priced out of the market. Do you want to take the chance? Keep your home, do a loan modification, and hang on – the next 5-7 years are going to be enjoyable.

For more information contact me at Dennis@BigDaddyDennis.com or see www.BigDaddyDennis.com

Big Daddy Dennis Phoenix Home Values

Phoenix Home Values

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