Three Reasons there will NOT be another housing
bubble:
1) Supply is being to
increase nationally. A lack of inventory in AZ
has created a market of multiple bids which caused our prices to rise. However,
nationally the supply inventory has increased dramatically since January.
2) Demand will decrease in
certain areas. Investors have been a large
part of the AZ Real Estate scene over the last 2 years. As prices continue to
rise, some of these investors will back off and investor sales will slow.
3) As mortgage rates
increase, buyers will be able to afford less. The Mortgage Bankers Association, Fannie Mae and NAR have all
projected an increase in mortgage rates over the next year. Buying power will
decrease as borrowers can no longer afford the same price point and as monthly
payments increase.
In summary, the time to
Buy is NOW! Prices and mortgage rates are on
the rise. Had a short sale or foreclosure recently and want to purchase? Give
us a call and we will have a loan officer place you on a plan to home
ownership.
