S&P/Case Shiller Home Price index tracks the the 20 largest metropolitan areas of the country. Phoenix was the highest gain with 1.3% and San Francisco was number 2 with 1.2%. We aren’t out of the woods yet and there is an expectation that we have another wave of foreclosures to go through but as history tells us, Phoenix has recovered faster than many other markets and this is good news that maybe we can recover out of this one too.
There are many good values out there. 1 bedroom condos for $35k in Central Phoenix. Single family homes for as little as $50k. Interest rates are expected to go up in 2010 but by how much is still unknown. Just remember, with interest rates currently in the 5% range, even if they go up to 6% or 7%, those are still good rates compared to the last 30 years. Yes, those are higher than the 4% adn 5% of the recent past but they can’t stay that low forever.
Even luxury condos in the Biltmore area are going for pennies on the dollar compared to how much they were selling for just a few years ago, and if you buy a Fannie Mae owned property you can get in for a little as 3% down and not PMI (Private Mortage Insurance) and no appraisal.