"So, what do you do for a living?"
"I'm a Realtor..."
"Oh, you're a Realtor! What do you think about this market?"
Never fails! Everyone wants to know what Realtors think about the current real estate market. I have enjoyed this conversation with clients, prospective clients, people from every walk of life, people from different parts of the country, and have especially enjoyed knocking around the subject with other Realtors.
My response has been the same each time though...
"This time is a great opportunity for first-time homebuyers and people who are prepared to take advantage of some great deals. All in all, just a great time...if you are ready!"
However, I have also been fortunate to converse with people who are on the support side of the real estate industry as well. That would be mortgage brokers, appraisers, underwriters, home inspectors, etc...
So, I got to ask them the same question. And I have heard so many interesting responses.
Just last month... "What exactly is a declining market?" Excellent question! Pima County has been classified as a declining market, as far as appraisals go. Declining? It is a shame that they do not give appraisers a check-box marked "adjusting" or "correcting". That seems to be a better description of what is going on in Pima County.
Real estate is one of the few markets that can be influenced greatly by consumer hysteria, however will almost always self-correct.
The Southern Arizona real estate market has consistently enjoyed a 4% - 6% annual appreciation. So when a jump of 17% to 22% occurs in a 6-month period of time...hmmm! Last quarter of 2004 into 2005 saw this kind of hysteria. Started small and then snow-balled. Then the slow down, then the correction. We are in the correction phase of that real estate cycle.
This would be the time to take a good, long, realistic look at your current housing goals. If you are renting, and have always wanted to own - this is YOUR time!
FHA-Federal Housing Administration has some of the most attractive programs that we have ever seen. They truly benefit first-time homebuyers and will go a long way towards assisting you and your Realtor in making your housing dreams come true! And the loan process is not nearly as difficult as they used to be either (dang do the Feds read these? oh well...).
Normally, I might see you out by the Saguaros at Sunset.
However, I might suggest we meet at your Lender's office. I'll have the chilled bottles of water, the map sheets, and showing times set up at some really fabulous homes! Let's get the party started!
PS~If you are really interested in real estate facts and data for Pima County, check out the Area Market Report! This will give you the true local view of our market, rather than the sensationalized hyped-up national view of random markets.