Have home prices in Chandler, Gilbert & Sun Lakes, AZ hit bottom?

Buyers and sellers in Chandler, Gilbert & Sun Lakes AZ, along with the surrounding East Valley have inquiring minds.  They want to know “Have our home prices hit bottom?” and “When will our home prices stop falling and start going up?”

First, I don’t think we’ve hit bottom.  Just can’t sugar-coat it.  Why?  There are still too many homes on the market and we continue to see foreclosures on every street.  Second, the unemployment rate is still too high.  Until people have jobs that pay…including benefits, many home buyers will sit on the sidelines and more sellers will be forced to short sale their homes.

I hate doom and gloom, but unfortunately, this is reality.  Do I think prices will fall on the scale they have fallen over the past 5 years?  No.  Price declines seems to be tapering off.  I mean, we can’t GIVE houses away, can we?

There is great news, however,  if you can afford to purchase a home right now.  GREAT prices and GREAT interest rates.  So, those who can buy SHOULD NOT WAIT!  Prices may still trickle down, but interest rates will likely trickle up.  Some sellers have even found a great strategy is to accept the loss on their current home and reap the benefits of a lower interest rate and a great savings on their purchase of another home.  These sellers are able to see the big picture and are not getting hung up on the loss.  It’s a great strategy if you can afford to do it.  Why?  Experts say if you purchased a home at the height of the market (some time in 2005-2006) it could take up to 20 years to see your home’s value return to what you paid for it.

As for when will the market rebound?  Wow…people have been trying to answer that question for 5 years.  I’ll just use a saying my dad always used to use.  “It won’t be as long as it has been”.

Here’s an interesting interview from some of the “experts in the field”.  I wonder why they didn’t call me?


About The Amy Jones Group

Mindy Jones Nevarez is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones Real Estate Group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.

Comments

  1. Amy, very interesting post. I do agree with your assessment of the house prices. In my market I see the prices stable, but there is nothing to say that they can’t go down a little bit more. And I agree that it will not be like we have seen in recent years. And it will not be everywhere. I started to see some increase in prices in certain areas.

    And to be honest with you I did exactly what you suggested. I sold my home for $10k less than what I had bought it for back in 2003 and bought a HUD home for a very good price. It is a much bigger home and I have a much smaller mortgage. In my head, I added the $1ok I lost on the sale of my home to the purchase price of the HUD home. It was still a great deal.

    I agree that if you have the condition to buy now, you should.