As President Obama stated this week, things are looking better…but there are still rough times ahead. That is not an exact quote, but it gives you the idea. That same sentiment is a reflection of the real estate market in the Phoenix, Valley of the Sun area.
The stimulus plan to forestall foreclosures with loan refinancing and modifications will not be very helpful for most distressed homeowners in the Phoenix area. But, to do nothing is worse. If you are facing the possibility of foreclosure or are in the foreclosure process, do not assume that they will not work for you. You can read more about available help here: Hope for Phoenix Area Homeowners.
The rate of sub-prime loan foreclosures continues to decline. Sub-prime foreclosures reached their peak around January of 2007. However, sub-prime foreclosures will be with us to some extent until late 2010. Alt-A loan foreclosures are now coming in to play. We will also see foreclosures in the future from the second mortgage field. The recession will bring more foreclosures due to job loss. Foreclosures will continue to impact our real estate market but the worse appears to be over. So, there is the bad news. There is still more rough road ahead.
It is not all gloom and doom in our bright Valley of the Sun. Home prices have returned to 2001 levels in many areas, making pricing, once again, extremely attractive to home buyers and investors. Plunging home prices have begun to taper off. Although home values may still see a decline in the coming months, the rate of decline is expected to slow to a rate of 1% or 2%. We may not be out of the woods and the road ahead may still be bumpy but things are slowly turning around.
The Valley of the Sun is packed with homes in diverse neighborhoods offering real bargains to homebuyers. With interest rates at a 40-year low, mortgage payments can be cheaper than rent. If you are looking for the real estate “flip it” market, that is a long way off. If you are looking for a home, your time has arrived. If you are looking for a long time investment as a rental property owner, then the Valley of the Sun should be on your list of best places to invest in the US. According to a recent article appearing on the RIS Media Real Estate News website, the Phoenix area is in the top 10 best places to invest.
Buyers should take a cue from the stock market advisors and real estate investors. Financial investors are once again encouraging their clients to purchase stock and to begin looking at real estate investment.
