I have a few buyers that are having a hard time finding a home in their price range. I am a numbers person, and to be able to serve my clients 100% I have to know what the market is doing and which way it’s going.
Some buyers are even crying out, it’s another 2005 bubble and prices will go back down. These buyers have opted to not buy now and wait. After looking at the numbers I don’t believe they are correct. From what I’ve seen I believe prices will continue on the upward trend and if they can’t afford it now, they won’t be able to afford in another year or two and they will need to either get a smaller house or look in another neighborhood that is more affordable.
Here is why I think this:
As you can see in this chart, the Market had an extreme high, then an extreme low. If the market didn’t have the bubble, you can see the second line is where the market should be if it continued on a healthy market trend. As you can see, the lines of where we should be and we are haven’t met yet. Where are is still lower than where we should be, so prices will continue to rise until inventory is at a healthy level.
So what is a healthy inventory level?? Probably around 34,000-37,000 homes for sale. Right now, as I type this in May 2013 we are at 15,500 homes. In order to stabilize and slow down extreme price increases we need to double our current inventory.
My recommendation is if you can’t afford to purchase now because of income restrictions, look for a smaller home or look in a different area that has homes in your price range. The Phoenix Metro has a wide variety of home ownership opportunities. Don’t miss out on yours.
Call Amy today for a private consultation. 480-294-8680