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Phoenix metro housing is on steroid. Take refuge! 7 to 9 percentage mortgages are around the corner.
It is very uncertain where the world is headed to but one thing is certain the interest rate will continue to go up and dollar will lose ground against most international currencies. When? It depends on too many factors but it is not that far off. As the result, home sales are coming to a halt. No one wants to sell except new home builders dumping their standing inventories offering incentives unheard of. They are almost done with that as well and some are even daring to release new lots! They have shareholders to answer to.
Meanwhile 7 to 9 percentage mortgages are around the corner. Debit ceiling crisis solved or not, more government borrowing at higher rate means someone has to hold the pan, the tax payers.
The fact of the matter is everyone is passing the buck onto the next person. My Gosh, if you own a business or not how many phone calls do you get that says, here is how we can “SAVE YOU” more money? LOL. I mean, everybody is trying to sell you some sort of SERVICES, all commission based.
What I am trying to say, household income in Phoenix metro seem to have doubled in the last 5 years. Everyone has two jobs and no one seems to be complaining about the higher cost of living. Certainly, I do not hear that from our tenants! They are pretty numb to it. Of course, the last three years landlords have increased the rents by almost 40% and this year they are giving the tenants a breather by either keeping it the same or raising it by 3%.
The seniors are the ones who suffer the most and we are one of the states that have the most of them. They are on fixed income and 10 even 20 percent increase in social security benefits has none or very little effect on their everyday life. Homes in 55 and over communities are having the least increase in price and rent.
Tenants went on rampage last three month clearing up the glitch in the new home standing inventory. Home prices have come down some but last couple of months it seems the resale inventory is moving faster and bringing multiple offers in the $350,000 to $450,000 range.
It’s all now wait and see game.
Unemployment is down, people getting used to the Hyperinflation. An eye for an eye. You raise the price on me, I raise the price on you. It will go on till it all blows up in your face. Even at that I recommend everybody, young and old, investor or renter, BUY A HOUSE NOW, because when it does, you can heat up your entire house with stacks of cash in your fireplace. Cash is Trash.
History will repeat itself but this time it is on steroids. So, if you think ok, I wait, by then you need to hurry to catch up to the next station see if you can get on the next ship and keep going.
If you are waiting for the government to take care of you, God Bless you all, because Dr. Kevorkian is coming for you! In 30 years the house you bough now for $500,000 it may be worth $50,000,000 if the dollar is still around.
All I am saying is we are a great nation and we have benefited from our strength for the past 75 years and we are going to stay strong as long as we can hold on but other nations are catching up fast and at the best we need to be prepared. Hope for the best and prepare yourself for the worst.
Gold, Silver, Bitcoin, bonds, stocks or real estate? At least you know a house is there and you can sell, trade or rent it at anytime and price and rents adjust to the rate of inflation . Where are you going to keep your gold and silver? Bitcoin, bonds, stocks, I am too ill educated to deal with things I have no control over.
Today at 5:41 pm on 5/24/23 there are only 366 detached single family homes, 2000 and newer in the 350,000 to $450,000 range available on Realtor Multiple Listings Services (Flexmls) in the entire Phoenix Mero (Maricopa County) with these criteria: 3-4 bedrooms, 2 bath and up between 1700-1400 sqft with no pool. This seem to be in most people’s budget.
Let’s leave the dense multi-unit family communities for next blog.
Please do your own due diligent. Do not make any decision based on my opinion. This is only my personal opinion.
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