I've long maintained everybody's situation is different, and the right time to buy (or sell) is when it's the right time for you. Everyone wants to buy at the absolute bottom and to lock in the absolute lowest interest rate on their mortgage. Unfortunately, few of us are good enough (or lucky enough) to do that. Most people have outside forces affecting their decision, so they can't simply sit around and wait for the bottom. Not to mention that if they did sit around and wait, they would probably miss the bottom before they realized it!
All that being said, I do think this is a great time to be a buyer, especially in Phoenix. Here are 3 reasons why:
Prices at or near bottom. I wrote last week about the market finding a bottom. Prices may still be shifting around a bit, depending on price range, neighborhood, and sellers' motivation. But the drastic free-fall in home prices is behind us.
Last month 64 homes sold in North Peoria (north of Beardsley Rd) for less than $200,000, with an AVERAGE PRICE of $164,298 and an AVERAGE SIZE of 1,939 square feet!
Interest Rates near historic lows (and expected to rise). Heather wrote a great piece last week about interest rates' impact on your buying power. I wrote something similar a long time ago. Many experts believe rising interest rates are in our future. Some people forecast a long-term trend of rising interest rates based on the deficits our government is running. Why not lock in a 30-year fixed rate mortgage at less than 6% while you can?
$8,000 Tax Credit. Few things are as sweet as getting money from the government for something you wanted to do anyway. First time buyers are able to take a dollar-for-dollar tax credit when filing their taxes. (10% of purchase price up to $8,000 - read more about it here and here.)
Like I said before, it's hard to pick a *perfect* time to buy. But the combination of these 3 factors won't be around forever.
Your wishing he was a first-time buyer Realtor,