I understand how you’re feeling right now.
You’re trying to purchase a home in Phoenix, whether for yourself or as an investment, and you feel like you’re swimming upstream. You’re but one of a dozen or more buyers competing for every single property that comes on the market and you feel like you’ve missed the boat. When not wishing you’d purchased earlier you’re tempted to give in to the frenzy, give in to the hype and spend more than you intended just to make sure you get a property.
The dock isn’t as empty as it seems; this ship, like nearly all others, will come back again.
Where others dread an influx of new homes coming to the market, you should embrace the concept and look to the horizon for the return of a decent inventory level. It doesn’t take much to make a heck of a difference.
We’re back in 2005 right now, minus the hyper-appreciation. Flipping – buying a home simply to shove it back on the market without improvements – remains a non-existent strategy and, with any luck, it will remain that way for the foreseeable future.
But the activity levels, the frenzy levels, are similar. Only a fool would tell you otherwise.
This isn’t to say you shouldn’t buy. What I am saying is to do so with eyes wide open. Don’t let the lack of inventory now make you do something you’re going to regret down the line should inventory improve.
Possibly it won’t. Most likely it will. And if it does, it looks like the best it will do is calm the frothing waters, not sink the market.
That ship you think you missed? Even if it doesn’t come back, others will.