Housing News and Information
Today’s market is an extremely exciting time for buyers. While we can’t stress enough the huge supplies of wonderful homes out there at historical low prices; I also want to provide you with some ways to fully take advantage of the market.
To start, I want to state some interesting market facts. In March, 2011 with 9,901 closed sales, home closings surged to become the fifth strongest closing period in ARMLS (Arizona MLS) since 2004. Leading the charge were closings in June, 2005; August, 2005; June 2004 and March 2005. As you can see, all other records were set during the height of the real estate surge.
What this tells us is that while supply exists, the housing inventory does not remain on the market for too long. The highest population of sales seems to effect homes in the $150,000 and under range. First time homebuyers or investors now finding our market attractive once more purchased most of these homes.
With an increase in home sales, prices seem to be on the mend. In some areas, prices have increased slightly (1%-3%). Cromford Reports ™ show that while short sale prices may be stalled, normal sales (resales) may have increased as much as 4.5% in the last 6 months.
There is still evidence that prices may continue to fluctuate for awhile. But the extent of those changes appear to be slowing up and, again, in some cases stopping. If you are in the buyer’s market, it’s important to take into account the quick turnaround of the inventory. We still see that homes in the higher price brackets may take a bit longer to sell but they do sell.
There are three basic Buyer types:
- Buyers looking to upgrade to a better home than the one they have
- Buyers looking to purchase an investment property (second home or rental income)
- Buyers looking to buy a primary home with no other existing home
Regardless of each buyer type, a buyer wants to get the best home at the best price. The market of today may not provide a truly extraordinary turn key home. In most cases, buyers may see one or more things in the home that may be considered quirky. But short of truly building your own custom home (one to you specific liking) most homes have the ability to be changed with very minor costs to suit your needs.
BUYERS LOOKING TO UPGRADE TO A BETTER HOME THAN THE ONE THEY HAVE
If your looking to move up, there are many opportunities to take advantage of this market. THE MOST IMPORTANT STEP IS TO BE PREQUALIFIED. IT’S BEST TO KNOW WHAT YOUR LENDER CAN PROVIDE YOU IN A MORTGAGE UPFRONT SO THAT YOU’RE NOT FALLING IN LOVE WITH A HOME THAT YOU MAY NOT BE ABLE TO GET A LOAN AGAINST.
Other items to consider:
*How does the home you’re interested in comp against other homes in the area? If the price is higher be aware that you may run into an appraisal issue on the backend that could effect your ability to get the loan.
*Will there be actual repairs or changes that may require you to spend extra money once the sale is complete?
*Do you have the financial resources for the downpayment, closing costs, inspection fees, etc.? Remember that even though a seller’s contribution is requested, it is never a guarantee. Consider the seller’s contribution as a BONUS.
*Are there things about the home that you can change through sweat equity? Painting walls, adding plants/trees, changing faucets, etc., are all fairly easy items to add. A buyer looking for a great priced home meeting their needs on the grand scale will find so many more opportunities if you’re flexible.
*Will you have the available time to get into a home you’re wanting to contract against? Short Sales can run minimum 45 days but upwards to 90/120 days. It’s due to all the processes that the seller is needing to take on get the short sale approved.
BUYERS LOOKING TO PURCHASE AN INVESTMENT PROPERTY (SECOND HOME OR RENTAL INCOME)
