The Current Housing Boom
Yes there is currently a boom in resale homes occurring right here in metro Phoenix, and very few people are talking about it. MLS reports that sales of single family homes between $70,000 and $150,000 in Maricopa County increased 1855% in 2008 vs 2007. I know what you’re thinking that could be 75 homes this year vs 3 last year, but that’s far from the case. There were 7571 homes sold in 2008 at a total value of $894 Million. Pinal County reported 2469 units sold in this price range vs. 385 in 2007. And these totals only include a fraction of new homes sales, as most new homes are not reported in MLS.
You see there’s always a silver lining. The depreciation in housing values, combined with lower interest rates have created a great opportunity for 1st time homebuyers, who 2 years ago thought they were priced out of the market. One can actually purchase an 1800-2200 square foot, 3 bedroom, single family home, built since 2000 and your mortgage payment will be equal to or less than renting a 3 bedroom, 1200 square foot apartment. An of course savvy investors have noticed and are gobbling up inventory as well. These are clear indicators that housing values have bottomed out in this price point. Back in June we reported that it was a great time to buy and these statistics bare that out. What do you think is going to happen when the media starts to report this information? If you or someone you know is looking for your first home please have them contact us. Also, as we previously reported, your 401K or IRA can be used to purchase real estate. Purchasing homes in this price range might offer you a quicker and greater ROI than mutual funds.
Check out this recent article that illustrates this housing boom is happening in many areas of the country.
http://www.realtor.org/RMODaily.nsf/pages/News2009011602?OpenDocument
Call us for details or to get on board.
Michael & Shannon Collins
