Is it time to buy? Phoenix Arizona real estate has seen it's fair share of the good, the bad and the ugly. From the effects of the "Keating Five" to the crash in 2007, Phoenix Arizona home prices have gone up and down like a Teeter Totter at the school playground. One would ask why Phoenix Arizona real estate would be appealing and the answer is resiliency. It has always bounced back. Real estate is a long-term investment and generally speaking losses occur because of an inability to sustain a short period of misfortune.
Like other parts of the country, from 2006 til 2010, Phoenix has seen a significant decline in home prices. Like other parts of the country, Phoenix has seen a drastic increase in foreclosures. Overall, foreclosures have a negative impact on the economy and the emotional impact on the homeowner is immeasurable, but one man's loss is another man's gain.Bank owned real estate presents an excellent opportunity for purchasing a Phoenix home for sale at a reduced price. While some of these homes may require a little 'TLC', they do pose a high potential for instant equity.
Don't over do it. When qualifying utilize the 31/41 qualifying ratios. The mortgage payment should not represent more than 31% of your total salary, and your total debt should not account for more than 41%. Don't rely on future income.
Reserves, be sure that you maintain two months reserves. This is money saved for a rainy day, or a temporary loss of a job.
While the Phoenix real estate market has fallen, it has shown signs of recovery. Don't wait to long, if you are thinking of purchasing a new home, now may be a great time.