The real estate market in Arizona and in much of the country is still running strong — but how long can it last?
Experts are generally starting to urge caution because the signs are all there that another real estate bubble is starting — and, eventually, bubbles always burst.
If you’re thinking about buying sometime in 2019, you can probably breathe easy — as long as you don’t get in over your head on a purchase. The market in Arizona, in particular, is expected to be more robust than the national average.
Back in 2011, Arizona’s average sale price for real estate went down to $131,000 — while today, the average home is selling for $250,000! That’s expected to go up another $10,000 in just one year’s time.
So, do you buy now or keep waiting? According to the pros, now is a better time to buy a home if you plan to live in it — since the prices are likely to keep rising for a while. Just the same, you want to stay within a comfortable financial reach with your mortgage so that you don’t get over-extended. Don’t jump into a property thinking that it’ll rise so high in the next few years that you can cash back out and escape a mortgage that’s burdensome.
If you’re an investor, now might be the best time to stockpile your money and wait. Once the crash hits, you may be able to make a few quick bargain buys through foreclosures and pre-foreclosure sales and turn them into rentals — and rentals are always in high demand when the real estate market goes down.