Deciphering Arizona and Scottsdale Real Estate News

The real estate market continues to be fueled by investors. Mortgage rates remain historically low, and for an individual buyer ? not an investor ? who can qualify for a mortgage, there is no better time to buy. However, the news stories of late always seem to be like a double-edged sword. While there is positive news, it is always coupled with negative information.

You have to take the Arizona news reports with a grain of salt and decipher what they really mean. Clients ask daily about the negative news they heard about Arizona?s real estate prices. And, while prices have declined substantially, the decline is not as prevalent in many neighborhoods people are seeking. There has been, for example, a much smaller decline in communities such as Terravita, a Scottsdale real estate community with a golf club and lots of second homeowners, than in neighborhoods located in Gilbert or Surprise. In addition, the percentage of decline has been much less in North Scottsdale than in the west Valley.

As you read about the decline of median home prices in Arizona, keep in mind that the Arizona Regional MLS takes into account all of Maricopa County, and lumps together high-end desirable neighborhoods with very low-end areas, including those often on the outskirts of town.

Sun City Grand, has seen a decline in home prices but it?s been nothing compared to the city of Surprise, which it borders. Sun City Grand homeowners are predominately retirees who have paid cash for their homes, so there are very few distressed properties in that lovely neighborhood. Smart second home-owners have also realized that now is the time to buy a second home in neighborhoods such as Sun City Grand, where you can find a gorgeous home on a golf course for $400,000 ? a price that was unheard of three years ago.

For first-time homebuyers who are qualified, there has never been a better time to buy! With FHA financing, some young people will pay about as much for a monthly mortgage as they pay in rent. There are homes that are $80,000. Whoever thought you could get a house in north Phoenix for $80,000? But there are some!