Please Vote - Reader Survey - Thanks!

by John Wake on November 2, 2006

Why do you read Arizona Real Estate Notebook?
I plan to BUY a home soon
I plan to SELL a home soon
I plan to BUY but NOT soon
I plan to SELL but NOT soon
I am a real estate agent
I am a real estate investor
I am a mortgage broker, escrow officer, etc.
I just like to watch the market
Other (you can leave a comment below)

  

{ 5 comments… read them below or add one }

1

henri 11.02.06 at 8:22 pm

my house is on the market and i’m watching it (not sell) from rainy NW washington state

2

John L. Wake 11.02.06 at 9:08 pm

Thank you for your comment. John

3

Cbass 11.03.06 at 5:19 am

Henry,

The reason your house is not selling is because it is priced to high!!! Try lowering the price and I bet you it moves.

4

Henri 11.03.06 at 9:11 am

Cbass:

Of course, but where is the right spot? houses are still selling in the area (just north of Dobson Ranch) at a _very_ slow rate for around $150/sqfoot for a 2000sqfoot house (which ours is)

with actual carrying costs around $900/month i’m not sure how much it makes sense for me to drop the price enough to move it this nov/dec.

i may be a silly optimist, but i’m hoping it sells in Jan/Feb. if viewings dont’ pick up in Jan then i’ll be dropping the price.

i’m not looking to buy until May, and with interest rates where they are at, if i sold today a safe investment wouldn’t make me much cash at all.

so, the way i see it, my gamble is based on the relative market changes between the west Mesa market and the Bellingham WA market between now and May

5

Cbass 11.04.06 at 8:44 am

Henry:

I understand that your carrying cost may be low, but what if all the naysayers, the doomsdayers, are right and prices continue to fall? Then that $900 per month plus declining asset value could add up to more than just $900. I think the best case scenario is that home prices stay flat for a couple of years (Adjusted for inflation this is still a decline in asset value in my book). Worst case, and is my opinion, a drop of like 20%+. Home prices went up like 45% last year so I don’t think that this is an unreasonable possibility but I guess we will see. Inspite of this I truly do hope things turn out the best for you. It is not that I wish harm on anyone I just think this is the reality of it all.

Also, since your carrying cost are so low have you considered renting out? Even with a rental management company this may be a viable option for and may provide cash flow and still provide some tax write offs I think?

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