Good morning! This will probably be one of the most gorgeous weekends we've had yet this year! Hello, I'm Gary Edelbrock, and I've been talking with Lee Amble, who has some good news to share.
Housing Is Back With A Blast!
Written By: Lee Amble, Consultant, and Realtor
Well, housing is really back and, if I do say myself, with a big .bang and a bang up of prices and a bang down of good, saleable inventory.
It's really pretty easy to understand, with the housing recession that many builders quit building. In many cases, the public is starting to recognize that new homes are our only new, replaceable inventory. Many builders went broke, left the area, retired and most were unable to get financing. This will give you an idea why locally we're short of inventory and will be for sometime as the demand has really improved plus in many cases prices are going up weekly with buyers and realtors searching for favorable properties.
- What's next? Let's take a look!
- Interest Rates: They are still very low, in fact, near record lows. They have been increasing slightly in the past month or so. We really never know from day to day, but, I think we all know they will go up at some time. In my opinion, probably in 12 to 24 months.
- I believe, as it has done in the past, when rates start going up at a faster rate, people will then try and beat the increase which will only add fuel to the fire. I have seen this happen many times in my nearly forty years working in the housing industry.
Believe me, the way the Feds are printing money, the rates will really go up; we just do not know when, but as I have previously said, I believe it will be 2015 or thereabouts.
Getting a long term rate at anything below 5% will look like a brilliant move a few years down the road. It's hard for me to believe that we can lock in a low interest loan for 30 yrs, I certainly would not lock in my savings for 30 years---would you?
It also is a great time to get a 15 year loan; yes, even less than 3%. This is the real smart move with your money.
- Buyers - - who are they and where do they come from?
It all changed in the time I started to sell real estate in Prescott in 1981. In the 1980's and part of the 1990's, we could expect most buyers coming from the desert towns or south of us, along with many from southern California, and a scattered few from the mid-west, etc.
- Money Magazine:
Then a phenomenon happened. We were rated the number one town for retirement in the Money Magazine and many other publications rated us in the 10 most desirable places to retire. Our Prescott landscape changed forever. The door to Prescott was now opened to the whole country and people have been coming ever since.
I have never kept track, but I am sure that I have sold people from nearly every state, and, contrary to what some people say, nearly all of my buyers have been great people and in large have been a great contributor to our whole area. Thank you all for that!!
I believe the most important fact over the years has been our great four season weather. Our winters are pretty and enjoyable. Spring runs in to summer, then fall, which gives all of us the opportunity to enjoy four mild seasons. They're all very livable as compared to a lot of the country. Many people can no longer afford to have two homes and feel Prescott, Az. is the best place to move to for year around living.
Look at Phoenix and desert country - - 100 to 120 degrees in the summer with the upper mid west and northern plains having winter temperatures down to 20 to 40 below. In some cases, the humidity in Florida, North and South Carolinas, Texas, etc. plus the traffic in southern California are also difficult to live through. Now that the secret is out, they will keep on arriving. Thank you all!
- First time buyer tips:
If you are a first time buyer, a parent or grandparent of a first time home buyer, all should consider a partnership or give help to the new home buyer, if possible. Again, it looks like the door of opportunity will close as prices increase again. I don't like to see this happen again, but it just may be the case.
- Some more small tips for first time homebuyers would be that you hire a good realtor and one who is hungry. The small fees are many times overlooked by others unless you find a hungry realtor who will really help you the most.
- Have your realtor or yourself look at overpriced listings as the seller may keep on lowering the price and it will then become a good value. Many of these are missed by most.
- Look at non-conforming homes that others do not want. They often have a really good price and realize the home can be changed as time goes on.
- Do a search of homes that have been on the market a long time and rejected by others. Many times the sellers get worn down and it could be a hidden value for you. Also, many realtors overlook these as they become what we call shop worn and realtors don't show them anymore.
- Look for homes that have odd paint colors, worn carpets and other small things that don't look good to a potential buyer. Most people don't walk past the front door so, remember, it costs very little to make small improvements. It may be the hidden value you're looking to buy!
These are my thoughts. Make your own decision on what to do. I hope this "Food for Thought" article will give you some items to think about. Thank you for reading! If you have any further questions or ideas for articles you would like to read in the future, please call me! The call is free and so are my ideas!
Remember Experience Isn't Expensive, It's Priceless!!
Lee Amble, Realtor, Consultant
NATIONAL REALTY OF PRESCOTT
Lee's cell: 928 533-43455
Jan's cell: 928 533-4488