Knowing when to buy or sell is not a perfect science. As many areas have seen such as Las Vegas, Orange County, Phoenix as well as several or most areas throughout our country what goes us eventually comes down at least part of the way.
These areas had skyrocketing home prices and people rushing to buy homes, many times over bidding the other offers on the table. Some even waived appraisals to get into the home they wanted. Real Estate agents ran around trying to keep up with the demand of buyers and the many offers on the homes they had listed. This was surely a temporary market but no one could possibly know how long it would continue and how far it would rise. What we should have been able to count on was the fact that it just would not continue at that rate.
This is something has repeated itself time and time again in history. Once it started to turn and buying slowed and prices began to drop it continued and it is impossible to know when we have hit bottom. Many speculate the bottom has already been hit and these areas are bouncing along bottom.
In the same manner these same areas are sure to begin to go back up again. When that will happen is not something anyone can positively predict. This is simply a correction to the over priced homes we had that seemed to have peaked about September of 2005. Many things have an impact on this problem including types of loans and how easy it was to get a loan as well as adjustable rate mortgages and the rising prices. Owners are now upside down on their homes which basically means they paid more for the home than its current value and are panicking. Some are simply walking from their homes.
If you are a homeowner and know the value of your home is lower than ever but can keep the home and continue to live in it and make the payments you are well advised to simply wait this out. Prices will rise again, not necessarily as high as they were at the peak but certainly to a more normal range.
If you do not own a home and clearly qualify, now is a great time to think about buying. Homes are selling for less than the appraised value as many are bank owned or short sales. This is the right time to get into a home that you can enjoy and sit back and wait for the values to adjust and then have a great investment.
Too many homeowners are in panic mode and selling unnecessarily or walking away and ruining their own credit. Keep in mind, that the market will correct itself and prices will not only stabilize but raise again to the levels that homes should be.
Here is an example of how you know that these low prices are not here to stay. A 2100 square foot home on an average sized lot in the Phoenix area would cost around $250,000 to build and that is not including the cost of the lot itself. Do you really think that same home that is being sold in today’s market by the bank for around $210,000 is going to remain at that price. How could it? That would mean new homes would never be built because building a home would cost more than it could sell for.
A really good experienced investor knows that you don’t follow the crowd and buy when everyone else is buying and sell when everyone else is selling, in fact, do the opposite. Investors sold their homes when prices were high and are now buying as prices are low.
Knowing what and when to do it is not a simple answer, many factors go into it, and personal circumstances will be a huge factor. Pick up a good book that will talk about real estate trends and read for yourself that this kind of thing will work itself out.
Check out Gilbert homes for sale with pools [http://www.homesgilbertaz.com/28430-Gilbert-AZ-PrivatePool-RESCity.aspx]. You may want to take a look Seville new homes for sale [http://www.sevilleazhomes.com/28784-Gilbert-Seville-AZ-NewBuild-RESCmty.aspx] also in Gilbert, AZ.
These areas had skyrocketing home prices and people rushing to buy homes, many times over bidding the other offers on the table. Some even waived appraisals to get into the home they wanted. Real Estate agents ran around trying to keep up with the demand of buyers and the many offers on the homes they had listed. This was surely a temporary market but no one could possibly know how long it would continue and how far it would rise. What we should have been able to count on was the fact that it just would not continue at that rate.
This is something has repeated itself time and time again in history. Once it started to turn and buying slowed and prices began to drop it continued and it is impossible to know when we have hit bottom. Many speculate the bottom has already been hit and these areas are bouncing along bottom.
In the same manner these same areas are sure to begin to go back up again. When that will happen is not something anyone can positively predict. This is simply a correction to the over priced homes we had that seemed to have peaked about September of 2005. Many things have an impact on this problem including types of loans and how easy it was to get a loan as well as adjustable rate mortgages and the rising prices. Owners are now upside down on their homes which basically means they paid more for the home than its current value and are panicking. Some are simply walking from their homes.
If you are a homeowner and know the value of your home is lower than ever but can keep the home and continue to live in it and make the payments you are well advised to simply wait this out. Prices will rise again, not necessarily as high as they were at the peak but certainly to a more normal range.
If you do not own a home and clearly qualify, now is a great time to think about buying. Homes are selling for less than the appraised value as many are bank owned or short sales. This is the right time to get into a home that you can enjoy and sit back and wait for the values to adjust and then have a great investment.
Too many homeowners are in panic mode and selling unnecessarily or walking away and ruining their own credit. Keep in mind, that the market will correct itself and prices will not only stabilize but raise again to the levels that homes should be.
Here is an example of how you know that these low prices are not here to stay. A 2100 square foot home on an average sized lot in the Phoenix area would cost around $250,000 to build and that is not including the cost of the lot itself. Do you really think that same home that is being sold in today’s market by the bank for around $210,000 is going to remain at that price. How could it? That would mean new homes would never be built because building a home would cost more than it could sell for.
A really good experienced investor knows that you don’t follow the crowd and buy when everyone else is buying and sell when everyone else is selling, in fact, do the opposite. Investors sold their homes when prices were high and are now buying as prices are low.
Knowing what and when to do it is not a simple answer, many factors go into it, and personal circumstances will be a huge factor. Pick up a good book that will talk about real estate trends and read for yourself that this kind of thing will work itself out.
Check out Gilbert homes for sale with pools [http://www.homesgilbertaz.com/28430-Gilbert-AZ-PrivatePool-RESCity.aspx]. You may want to take a look Seville new homes for sale [http://www.sevilleazhomes.com/28784-Gilbert-Seville-AZ-NewBuild-RESCmty.aspx] also in Gilbert, AZ.
SHARE
