The commercial real estate market in Phoenix, Arizona has been consistently following the national residential real estate market by about 12 months during the past five year ‘crash’ that has been going on. However, the market now is continuing to trend upward, and soon, the nation and Arizona will be heading back to a more regular market- the way we like it!
The Phoenix commercial real estate market will most likely see improvements over the next year as we catch up with the nation. Residential real estate will begin trending upward as well. Values are beginning to go sky high and prices are increasing at a trend rate that is almost straight up!
Yes! Indeed! The real estate market in the Phoenix area is heading on up. Should you buy real estate again? Or get out of the market?
We predict that home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2015! That gives you a little time. Remember also that if you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for another 5-7 years, or maybe even never again! So be careful about your choices as the amount of debt in America will continue to grow, as prices go higher.
Remember that even though rental rates are lower than their mortgage rates, don’t let your house go just because you think you can rent. Let us repeat that it will be 5-7 years before your credit report looks good to purchase a home again. Could you really save the money in 5 to 7 years renting that you wouldn’t have otherwise? Some things to think about, especially since some economist predict that hyper-inflation is going to hit.
It’s inevitable that inflation will come back. That means that the value of the dollar will drop dramatically. That could be a little scary for you and your family. If this additional hyper-inflation does come to fruition like some economist think it will in the future, it means that you will be priced right out of the market. That is a chance I don’t think many should take, especially if they have a family. Keep your home and do a HARP 2 Mortgage modification. You can get through this.