The inventory is too low and there are not enough buyers in the Phoenix Real Estate Market- this means that the Phoenix Real Estate Market is on the verge of a new boom in real estate values.
Dennis Dahlberg is Level 4 Funding’s General Manager Hard Money Lender
and he predicts, “This boom is going to be different.” He goes on to say, “The last boom was fueled on greed of the consumer; this time it’s going to be a supply problem. Over the past 6 years there was little construction or movement of dirt, leaving the Phoenix housing market starving for new homes. Additionally, home values are raising dramatically, and once the current home owners get above water (have equity) they are going to want to move up. We’re going to have a trifecta or the perfect storm-no homes, pent-up demand, and record low interest rates. And if you throw a little inflation on top of the mix – watch out! Bam! its going to be a wild ride – a wild west ride!”
With the low inventory and way too many buyers, the market is lopsided and Dahlberg believes the Phoenix Real Estate Market is on the verge of a new boom in real estate values. Dahlberg has many years of flipping and fixing real estate experience so he has a very good grasp of the Phoenix Real Estate Market.
These findings are based on the data provided by S&P Case Shuller, the bottom is over and we are moving up again and this time it’s going to be even bigger! (For a high resolution [click here Real Estate Values
It appears the real estate market in the Phoenix area is heading up. But now some questions rise: Is it time to buy real estate again? How long will it take to come back to normal? Should I get out of the market and wait? These are not the easiest questions to answer but Dennis makes these recommendations:
— Phoenix home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2014!
— These upturn in values are due not to greed but instead to LACK OF INVENTORY AND RECORD LOW INTEREST RATES.
— Keep your home if you can. Do whatever it takes to keep the current home. Once inflation hits, it could be difficult to get another.
— Have you considered loan modification such as HAPR 2? It’s possible! Try it out.
If you do ‘bail out’ and you let the bank foreclose, you will not be able to purchase a home for 5-7 years, maybe even never again because inflation will come back. That means that the value of the dollar will and will drop dramatically. Could this change if America chooses to cut spending and raise taxes, cut medical/social security, and increase the tax rate by 45%? Sure, but I don’t think this will happen. Instead, the amount of debt in the USA will continue to grow. The amount is very frightening. So hang on to your house if you can. Otherwise, in 5-7 years, you can see the cost of bread rise to $10, Gasoline to $25/gallon, and the average starter home price will be $600,000.