… then this probably is a really, really bad time to be buying.
This is vaguely related to another corollary which states that just because you want a certain type of property at a certain price, that doesn’t mean it exists here in the Phoenix area.
To review, a buyers’ market means there is more supply than demand. For those who have been following the Maricopa County absorption rate numbers I post, anything over a five- to six-month supply indicates a buyers’ market.
A buyers’ market doesn’t mean every seller is desperate to sell. It doesn’t mean every seller is willing to give their home away just because you made an offer. It does mean that there are several choices should one home not work, but not every home on the market is going to meet your needs.
Personally, I don’t believe there’s another 20 percent to squeeze out of the vast majority of the Phoenix real estate market. We’ve already seen double-digit drops in most areas. I don’t believe 2000 pricing is realistic (some areas already are back to 2003 prices.)
Maybe I’m right. Maybe I’m wrong. But you purchase based on what you believe. If you fully believe there’s another 20 percent drop coming this year, why in the world would you buy a home?
[tags]Phoenix real estate[/tags]