Mountain Goat, British Columbia, Canada
                                                                 
    Have you ever said to yourself or maybe someone else, " I could of bought that for a fraction of what it sells for today......."  
    Well, guess what?  Now is one of those times when your going to wish you had bought real estate, mark my words.  If you don't, several years from now you may well kick yourself for not getting off your duff.

    Apparently, I am not the only who thinks this is going to be an incredible year to buy real estate.  Check out this Recent Article from Realty Times.  Though this article is geared towards investors looking for rental property, anyone in the market to buy property should wake up to the opportunities that exist in many markets across the nation, and Arizona is definitely no exception.  An oversupply of inventory, low prices ( in some areas in the Verde Valley, land is 30% or more below the 2005 highs), coupled with low interest rates, have created a unprecedented buyers market, where countless opportunities exist to obtain a great house for a great price, with excellent financing options.  
    Yes, lending standards have tightened considerably, and lenders are currently operating with an overabundance of caution.   But lenders were more or less giving loans to anyone who could fog a mirror, in the midst of the boom years.  Some of the old rules apply once again, such as decent credit, a down payment of some sort and verifiable income.  You need to have at least one of these 3 items in order to qualify for a home loan and lenders are putting a lot of weight on a consumers credit score.  
    Contrary to popular belief, zero down, 3% down and 5% down loans still exist.  Ken and I recently closed a zero down loan on a condominium in Sawmill Cove.  FHA is also talking of reducing the 3% required down payment to 1.5%.  This will help many cash strapped households achieve homeownership.  FHA loan limits in Yavapai County have also just been raised from 295,830 to 390,000, which will allow 3% down loans on homes in this price range and buyers will also be able to carry more debt with an FHA loan as opposed to a conventional loan.
    Currently, mortgage rates are anything but stable.  A few weeks ago rates bottomed out in the mid 5's, bounced into the mid 6's a few weeks later, and are currently around 5.8%...that could change within the hour as the financial world shutters and coughs in reaction to the volatility on the Stock Market.    In recent weeks interest rates have literally been changing a few times a day, as investors react to market conditions and economic reports.  Some economists are theorizing that rates could be going up substantially in the future, others forecast a return to rates in the 5's again.  One thing is certain, lending standards will not be loosening in the immediate future.
    No one can pinpoint when the best time to buy is.   What we can tell you is that incredible conditions exist right now for buyers, and an oversupply of homes and land in the Verde Valley and Sedona ensures buyers will find great buys on Sedona Real estate and Verde Valley real estate.  If you are one of those people who have been sitting on the sidelines waiting to see what is going to happen, realize that Market Timers Often Fail, and the reality is that in 2007, more than 5 million homes exchanged hands across the nation.       
    If you have any questions about Sedona / Verde Valley real estate, please e-mail us at hollywoodaz@commspeed.net  or visit our website.  If you are reading this article in print, and wish to read the articles referenced here, please go to: HTTP://blog.verdevalleyrealestate.com/2008/02/28/prices-might-go-down-a-little-more-but-interest-rates-may-rise-significantly.aspx.  
    Remember, all current issues of the real estate insider are now on-line and you can now receive the real estate insider as a monthly e-mail, photos and all!  You can also post comments and vote for your favorite articles.  So help us save a few trees, and sign up to receive our electronic version.  Please drop us a quick e-mail to let us know you have subscribed to blog.verdevalleyrealestate.com, so we can remove you from the print mailing list.  We look forward to your questions and comments on line!
    Next month we will give you a report on how our local real estate market faired in the first quarter of 08.  See you then! 


Homer, Alaska, resident