Buying Today? Will my new home decrease in value?

So often today I hear this from buyers. My response is "You have every right to feel that way? When all you see is negative news and foreclosures down every street, why would anyone buy?" Well smart buyers are BUYING NOW. There is a saying--"The Early Bird always gets the worm!"

For nearly 18 months our housing market in Phoenix have crashed and seen sinking home values. Home values in some areas are being sold for 10's of thousands below what they were built for just four years ago. Now everyone knows that in Phoenix, the run up of prices happened primarily in 2005-2006. So for the market to pull down below that time period, only one thing can be said-"You can't build them for what they are selling."

Now there are those "Bandwagon Yellers" who keep saying the market will decrease more and more. Not sure if they look at real estate stats or not? Month after month, locally and nationwide, housing re-sales are up! That means we are selling off inventory. With decreased supply and steady demand, house prices will stabilize over the next 12 months.

Perhaps in some areas that have not been hit, we could see some downward pressure from foreclosures. However, many believe we are hovering at a 6 month bottom.

So my proposal is "BUY NOW." With a good REALTOR, he/she can and will provide recent comparable solds so you don't pay too much. If you can afford the payment, you love the home, you are willing to stay in it for a minimum of 5 yrs, then WHY NOT BUY? Prices will go back up, this is not the end of the world. Prices will climb once inventory decreases, the election happens, and we pull out of this housing recession.

If you would like to buy or sell a home in the Phoenix metropolitan area, feel free to call me at (623) 979-3002.