With the US Housing Market as Bad as it is, How Will Potential Homebuyers Know When it is Safe to Invest in a Home?
Though Arizona’s housing market is recovering faster than most states in the nation, prices for homes are still high and inflation remains to be a concern for many potential homebuyers. Houses are like any other functional consumer good, and their prices are affected by short-term supply and demand as well as long-term inflation.
When deciding whether or not it’s a good time to purchase a home, potential homebuyers should consider a variety of factors including: the housing trends in your local market, house inventories, rent yields, and foreclosure rates. There are numerous techniques to predict future housing prices, but their accuracy is speculative. Each homebuyer’s situation is different, so my advice for anyone considering purchasing a home in today’s market is this: compare the price of the home to the value that it will bring to you and your family, and then evaluate whether or not it is a smart investment for you.
The prices of homes in America are likely to continue to rise. So, should you rent forever? You can check price-to-rent ratios and buying-versus-renting calculators on the web for statistical information in your area to help you decide whether or not buying or renting is the better choice.
If you are currently a homeowner and are struggling with owning a home in today’s economic environment, specifically if you owe more on your home than it is presently worth, you may want to consider short-selling your house. If your home is facing foreclosure, you can opt to instead short-sell your home to a third party if your lender agrees to accept less than your outstanding loan on the home. Short-selling will affect your credit to a much lesser degree than a foreclosure will. A qualified Arizona short-sale attorney can walk you through the process of short-selling your home, and can answer any questions you may have about the procedure.