Janet Mohr
It’s a great day to buy Real Estate in Arizona! I know several people are waiting for the interest rates to come down or for a crash in the market.
I hear buyers say, “I am going to wait until the rates come down”.
I personally feel the rates of 5% and under are not likely in the near future. The fact that we were able to enjoy low rates for such a long time has shocked me. Often, I would calculate payments in a higher rate so buyers could see the real difference of their buying power. Until 2009, any rate under 7% was considered low. Isn’t it funny that now we are all aghast to have to pay over 5%?
Historically, the rates we have been seeing have not been enjoyed since the 50’s.
“I’m waiting for the prices to come down. The market is going to crash”.
Real Estate values can and do fluctuate, but the crash we saw in 2009 had different circumstances.
Hopefully, we will learn from that disaster and it will never play out again. First of all, the loan guidelines did not make for secure loans in those days. Many buyers did not have the income to pay the loan back. Banks were lending for more money than the value of the property and giving buyers cash back at closing. In my opinion, one of the biggest faults of 2009 was the Government stepped in to “help”.
The Dodd Frank Act was a disaster for our recovery. Having appraisal guidelines that deflated past sales values will never be helpful. And one of the biggest reasons why we should not see a market crash at this time is inventory. Supply and Demand rules. The number of the homes for sale, especially in Cave Creek, Carefree and North Scottsdale, is still unusually low. We did see an increase starting the summer, but the inventory went down and is now very low again.
And, why should a homeowner want to leave their 3% loan right now? I am sure many people will decide not to sell because of their interest rate on their current home. Keeping that home as a rental would probably be a smart way to go.
And lastly, with the current loom of inflation, buying and owning Real Estate is a smart bet. Real Estate hedges inflation. If you look at wealthy people, you will see that the majority of them will have a large Real Estate portfolio.
If you are thinking of Selling or Buying, Think of The MOHR Group! Janet 602-980-7653, Ryan 480-204-2619, Kendal 303-549-8224
