December 12, 2011 by Marc Krebs
"It’s on the market for what?" "It sold for what?" "Interest rates are what?" "Wow!" Those comments are ones we are hearing often these days. It’s hard to believe that interest rates can be hovering around 4%. And when you can buy it cheaper than you can build it, the concept of undervalued becomes very clear. We are experiencing an opportunity to own real estate like none other in our lifetime.
There’s only one thing missing from the market formula; Consumer confidence. Uncertainty has plenty of company these days causing many to wonder what to do next or where to turn. Meanwhile, amazing bargains are being gobbled up at a surprisingly strong pace causing inventories to reach levels that would normally put pressure on prices to rise.
In Arizona, we have seen a large increase this year in the amount of cash sales primarily driven by investors. But for those not able to pay cash, interest rates are the real star causing monthly affordability to rise and the cost to own real estate to fall.
Transferees moving to Arizona may never find it to be more affordable than it is today. It is a great opportunity for those corporate employees and new recruits that may currently rent to explore the prospect of home ownership. In fact, Coldwell Banker.com has recently built a First Time Home Buyer Resource Center on our website specifically to help educate first time buyers in any market.
Click on the links below to see market trends for Phoenix and Tucson.
Phoenix AZ Real Estate Market Data – 2011 Q3
Tucson AZ Real Estate Market Data – 2011 Q3
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