Real Estate Prices In Northern AZ
Watching the prices in the valley go down, and seeing the prices go up here on the mountain, makes you wonder, what’s going on? I personally think it has to do with “needs and wants”. If you need to sell, it may get done, but at what cost? If you don’t need to sell, you have much more patience to wait for the right buyer to come along.
I wrote about how the prices here on the mountain are rising in an earlier post. Some people said they didn’t believe it, but it’s true. I’ll drag some more stats out later, but for now you should check out John Wakes post from October 20th. I like how John uses graphs for the visual among us. This post shows how the prices are going down in the valley. Which we all keep hearing. But what’s going on up here?
I’ve had quite a few people come to me and say they want to sell, but are not in a hurry, and are only interested in selling if they can get what they want for the property. They have the ability to wait if they need to. Most of these people are probably selling because they can, not because they have to.
I have a feeling that a lot of people in the valley when they sell, are selling because they need to sell. I’m not in that area so I can’t speak for the Realtors down there but I can think of a few cases when you may need to sell. Like when you take out a 100% loan. Even if you get a conventional loan, It takes a few years to get any equity back in your house. In the mean time as Dave Ramsey would say, “life happens”.
I would much rather be in the first group than the second. The first group either pays with cash, or puts a good amount down and isn’t trying to flip the property in 6 months. If you can afford it and want to buy a home, and are planning to be there for 5 to 10 years, especially if you can put 20% or more down, buy it when you want to. Then later when it’s time to sell, it won’t matter what the market is doing. You’ll have the time to get the price you want for it.
Now I have to say that a lot of the difference in the two markets has to do with the fact that many of the homes up here are secondary homes or investment properties. Where the homes that have to be sold are most likely primary homes. But I still think it’s a good lesson in how we should be buying, by watching the smart ones do business.
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