The current talk of course, is all about the Phoenix (as well as the country’s) real estate market dropping in value – and it is. See article out today here.
Question? If you’re a renter, should you renew your lease (continue to rent) or opt into the more buyer friendly market happening now?
At some point, you’re going to buy a house, that much you know. You tried this past year and got turned off by the mega-competition offering on homes for sale, so you signed a lease on a home or apartment, because trying to rent a house, was just as competitively bad as buying.
It’s tempting to wait and renew that lease for another year. After all, your wise landlord should be done raising your rates for now, seeing that the rental market is softening as well. And home sales prices continue to trend downward in pricing. On the one hand you would not be faulted to sign a year’s lease and stay where you are, unless of course, the Geico renters upstairs are forever dance clogging LoL:
But things have changed, radically and quickly. (See Numbers Below) Now what should you do as your lease comes up for renewal?
All that said, or danced to, there’s a strong case for house shopping sooner than later. Remember, with over 45 years in the residential real estate market, I’ve been to a few real estate market rodeos. One thing about Phoenix residential real estate, predictable it’s not. There’s no smart money to bet on here.
There are however some things to think about:
- Due to inherently strong Phoenix demand, demand will return
- When demand returns, and it could be soon, competitive bidding returns
- When competitive bidding returns, you’re back to square one.
- With over 100 homes coming on the market each day – You have choices
- Currently, unless a deal comes up that’s a real deal, you may (probably) are the only one ready to make an offer.
- Sellers are much more open to lower than asking prices and terms
- Contingencies, such as selling a home first, are also considered, especially if your home is already under contract.
What would it take to flip the script back to a seller’s market? Not much. For one, an interest rate dropping to 4% would, in my opinion re-open the flood gates. Just as sellers are now bemoaning missing the top of the price market, buyers will likewise become very disappointed for not taking advantage of this window of opportunity now. But will that happen in a few months or a few years, or ever? The Lord knows!
There is however, a really strong case for getting back into the buyer market now: If you actually find the home of your dreams that you can see yourself enjoying for many years to come, and you’re able to secure that home and begin that enjoyment now, what is the value of that?
I’d say that’s something to clog about!