If you are renting a home in Phoenix or planning on relocating to any of the towns around Scottsdale , like Fountain Hills, Mesa, Paradise Valley or Peoria, there has been no better time than the present to buy Phoenix real estate.
I normally reserve myself from ‘realtor' talk by saying buy a Scottsdale home today. Buy a home from that new home builder in Sonoran Mountain Ranch in Peoria, AZ before the inventory is gone or don't miss out on that Mesa, AZ home.
However, Phoenix real estate prices have dropped as much as 30% in most area outside of Scottsdale, Paradise Valley, Carefree and Fountain Hills where prices are down closer to 15%.
If you find a Phoenix area home or any Fountain Hills real estate that you love and it is more than 30% off of its 2005 price, here are 5 reasons to buy a home in Phoenix.
1) Phoenix, Arizona Homeownership has been a sold long-term investment. - Historically, if you purchased a home in the last 30 years in Phoenix, Scottsdale, etc... you would have received substantial tax benefits and as much as 6%-10% annual appreciation (according to the OFHEO). This rate of return includes the downturn we are suffering through currently.
2) Mortgage interest rates are at historic lows -
- Rates on 15-year, fixed-rate mortgages are well below 6%
3) Mortgage Rate Increases could prevent you from buying homes in Phoenix AZ you want - As interest rates go up the price you pay for a home goes up. In fact, price of a home is most often secondary to how you finance a home. Higher interest, the more you pay for a home in the long-run.
4) Time is everything, not Timing and there has been no better time to buy real estate in Phoenix- it is impossible to predict the bottom in Phoenix real estate. However, home prices in the surrounding towns of Maricopa County, which includes Phoenix, Tempe, Mesa, Chandler, Scottsdale, Peoria are down about 30% in home value. If you purchase now , and stay in your home at least 5 years, history tells us that even with dips in value , your home will appreciate in value.
5) A hedge against inflation is arguably the most important reason to own a home in Phoenix. Simply, put if you buy real estate in Scottsdale and you monthly mortgage payment on a 30-year fixed rate mortgage is , for example, $2,000/month, that payment is fixed for 30 years and never increases. It actually will go down. As inflation goes up (which it always does) and rents in your area and home prices rise, your monthly payment never changes for 30 years. You know that the amount you pay on your Scottsdale or Phoenix area home per month is fixed in time and will never rise as everything else around you does.
There are many great reason to own a home in Scottsdale, Phoenix , etc... such as
- long-term investment
- tax benefits
- a place to live and call home
- a hedge against inflation
Yet, there has been rarely a better time to buy real estate in Scottsdale or Phoenix with fixed mortgage interest rates at historic lows and prices 30% discount to where they were just several years ago.
For more information, call your local Real Estate agent or call me today at (480) 221-8080 to learn more about life in Scottdale and living in luxury communities in Phoenix |Scottsdale.
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Copyright © James Wexler * 5 Reasons to Buy a home in Phoenix*
Contact James Wexler (480) 221-8080 for your Phoenix AZ | Scottsdale AZ area Real Estate needs
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With reasons as great as this I don't see why anyone wouldn't want to live in Phoenix!
wex - most buyers never think about the hedge against inflation, but if you lock in at 6 % , you will have the exact same payment (or less) for the next 30 years.
Sal Poliandro - hey thanks, though, I would say the same thing about Bergen County. Make sure you call Sal P at Re/Max properties
Scott Skinner - it is a rarely mentioned concept, but historically that is the best reason to buy a home, inflation always goes up, and fixing your payment in time is the primary reason to buy a home
JW - the great thing about this list is that all of these rules or home buying tips can be applied to any city and town almost these days
BR - these are pretty standard tips that apply to anywhere and about anytime,
I hope agents share these with buyers who are on the sidelines and these tips help to get them back buying real estate again
James you have me sold:) I know if I ever visit Arizona you would be the perfect tour guide!
Bill Gasset - thanks, I am not too busy to take you around, as long as you dont mind we stop off for 9 holes of golf , I will look you up when I am in Boston for a tour myself
There are many great reason to own a home in ANYWHERE , I just think that there needs to be more emphasis on buying for all the reason you mentioned and less emphasis on an investment. Real estate is not a good investment and except for those years 2001-2005 it has never been a good investment
David - I have to politely disagree.
Though, it is hard to do that with confidence as we watch real estate prices plummet around us. I think real estate is a great investment as an accidental byproduct of all the other reasons home ownership is so great.
I know rule # 2) Mortgage interest rates are at historic lows - 7-year arms are at 5.18% , that is almost too good to pass up
Nick - I dont think adjustable rate mortgages are a four-letter word. They just need to be explained to people appropriately.
wexler - good explanation about the price of housing actually goes up if interest rates start to creep higher and higher, they may go down, but you can lock in all-time great rates now
JM- I know that people expect interest rates to go down further, but that is not necessarily the case for mortgage rates, they are pretty low right now, and that is all we know for certain.