Arizona homes for sale

Who benefits in today's real estate market? February 04, 2002 For years the housing market has favored sellers. Now, balance is returning to many real estate markets around the country. Some sellers are complaining that they missed the boat; they should have sold last year when the market was hot. Even so, today's market offers opportunities for enterprising buyers and sellers who understand current market dynamics. Buyers were at a distinct disadvantage last year in areas where inventories were at record lows. Many buyers found themselves losing out to other buyers in one multiple offer competition after another. Some prospective buyers dropped out of the market altogether, convinced they'd never succeed in such a frenzied marketplace. Now, these buyers have second chance. Not only is there less competition today than there was a year ago, there is more inventory in many areas. And, interest rates are considerably lower than they were last year. This makes a home purchase more affordable, and loan qualification easier. Anecdotal evidence suggests that the number of first-time buyers is increasing. Entry-level buyers got a boost on January 1, 2002 when Fannie Mae and Freddie Mac raised their conforming loan limits from $275,000 to $300,700. Freddie Mac and Fannie Mae are two quasi-governmental agencies that purchase mortgages on the secondary mortgage market. These mortgages typically carry the best interest rates and terms. The new loan limit is good news for buyers attempting to buy a home in higher priced areas like San Francisco and New York City. According to Freddie Mac, an additional 250,000 buyers became eligible for lower cost loans when the new limits became effective. HOUSE HUNTING TIP: Trade-up homebuyers can also benefit from the current market. Home prices of properties in the upper end of the market-particularly homes in the over-million dollar range—have softened. But, in many areas, entry-level housing prices are holding steady. For buyers who are moving from a lower-priced home to a more expensive home, this means that you could pay less for your new home than you would have last year. To further sweeten the deal, the price of the home that you're selling may not have declined at all, or very little. In the Silicon Valley, for example, there is a glut of inventory of over-million dollar listings. As a trade-up buyer, you can have your pick. And, you may even be able to negotiate a good deal. The homes in the $500,000 range are still bringing in multiple offers. So, you can potentially do well both buying and selling in the same market. Sellers can also benefit from the current market, if they set realistic expectations for themselves. Your best bet is to analyze the current competition from other listings similar to yours. Then select a list price for your home that is lower than the list price of your stiffest competition. Homeowners who have no interest in buying or selling are realizing significant savings through refinancing. If you haven't begun the process, don't hesitate. Many analysts believe that interest rates are may start rising again by mid-2002. There is a lot of uncertainty in the current financial market. If you're buying, make sure that you have a long-term horizon. Home prices could soften further before they rise again. This is a natural part of the economic cycle. It only becomes a problem if you have to sell in a down market. THE CLOSING: If you're not sure you'll be in the home for at least five years, this may not be the right time for you to buy. Dian Hy mer is author of "Starting Out, The Complete Home Buyer's Guide," Chronicle Books. Copyright 2001 Dian Hy mer Distributed by In man News Features   More - Real Estate Columns   FREE reports on homes sold in your zip code Arizona Homes - All available zip code reports Chandler Homes Gilbert Homes Glendale AZ Homes Goodyear Homes Mesa Homes Phoenix Homes Scottsdale Homes Sun City AZ Homes Tempe Homes   FREE custom-made reports on homes for sale Metro Phoenix Southeast Valley. Homes for sale in Ahwatukee, Chandler, Gilbert, Mesa, Queen Creek and Tempe. Phoenix. Homes for sale in Anthem and Phoenix. Southwest Valley. Homes for sale in Avondale, Buckeye, Goodyear and Litchfield Park. Northeast Valley. Homes for sale in Carefree, Cave Creek, Fountain Hills, Paradise Valley, Rio Verde and Scottsdale. Northwest Valley. Homes for sale in Glendale AZ, Peoria AZ, Sun City AZ, Sun City Grand, Sun City West, Surprise and Youngtown. Wickenburg homes for sale. Metro Tucson Tucson area. Homes for sale in Marana, Oro Valley and Tucson. Green Valley area. Homes for sale in Green Valley and Sahaurita. Other Great Arizona Towns • Casa Grande homes for sale • Flagstaff homes for sale • Lake Havasu City homes for sale • Payson homes for sale • Prescott homes for sale • Showlow homes for sale • Yuma homes for sale