Hey Tucson!!! What happened to the Real Estate Market of "old"?
When I hear folks bemoaning the fact that their neighbor sold there house for a $100k profit, having only owned it for 2 years, I say..."EXCELLENT!!! What a great investment choice that person made! He followed the time-tested model for investment of "Buy Low; Sell High!". Now, how does this differ from buying Microsoft stock in the cyclical times of HUGE earning disparities, AND in the same 2 year windows? Here's the answer...it doesn't!". This often gets me very confused looks in responses or someone simply vehemently debating my sanity.
So, now what? Ok, first of all, check your attitude at the virtual door. IF you weren't wanting to sell your house, PRIOR to the late summer of 2005...STOP WHINING! :) As a matter of fact, if your home is truly a long-term investment strategy, you will be just fine! There was a small window of opportunity for people to make large sums of money during a period of "over-exuberance", just as there was in the stock markets at the turn of the new millennium.
Oh, most of you that is...with the possible exception of those who chose "creative financing" angles. You know, the Interest Only ARM that has begun to ratchet up its rate now and due to the "NO DOCS, STATED INCOME and ZERO DOWN" financing it is now at 8.5% and a purchase price of $350,000. Yeah, that guy/gal, the average Tucsonan who makes between 30 & 40k, well, they may just be feeling the pinch at the moment. They may even be the last owner of one of the many FORECLOSURES my clients have purchased or that I've sold in these past few months.
What I am getting at here, my new avid readers, is that Tucson's Real Estate Market is just fine and on it's way to a healthy market, just as healthy as we've seen in the past. There will be plenty of money to be made, just hold on for the short-term bumpy ride as the market continues to correct itself. The muddy waters are already beginning to clear. Those waters are still a ways off from being "potable" in my humble opinion, but nevertheless, well their way to crystal clear yet again. We WILL be not only a healthy market soon, but our growth will be phenomenally exponential and THAT, you can take to the bank! :)
-=Dan
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