Tucson Real Estate Market – Push Me Pull You

Push Me Pull You

We are about to wrap up the first quarter of 2009. It has been a roller coaster ride these past three months. Many would compare it to the long drop after the slow churning and cranking of the cars to an unnatural high then the sudden free fall and rush of wind past your face and the feeling in your stomach that you wish you hadn’t had that second corn dog while waiting in line.

This almost nauseating experience has left may potential home buyers dizzy and reeling.   But there are some experienced riders on board.   Experienced riders know the sensation of the big drop lasts after it is over.   They know how to recover faster and the also know the visual indicators to look for while the inexperienced have their eyes closed hoping it will soon be over and they can open their eyes.

When they do they realize they missed an opportunity, an opportunity the experienced rider has already taken advantage of and in fact was waiting for.

Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85

4.85 % 30 year fixed interest rates.   It was a month ago I posed the question to a Mortgage broker “Will 30 year fixed interest rates go below 5%”   The answer, “No, there can’t.”   Well, today they did, so the must have been able to.   That is a significant change in what is going on in the economy today.   It isn’t the same old roller coaster ride some have experienced before.   However, for the experienced, the know the signs.   This is a new sign, but they know what it means.

Tucson Real Estate Activity UP!

There are buyers in the market, some are bargain hunters, other are first time home buyers looking to take advantage of the tax credit they can claim against the purchase of a home.

More of the buyers today are looking for a “home” and not an “investment”.   They want a place for their family to live.

The Time of the Frugal

It is almost a paradox.   For some it is a paradox.   Those that have lived frugally and saved their money waiting for the time to buy are now in the time of the Frugal.   But, being frugal, often means the love of the saved money has replaced the desire for what it was being saved for.   THIS IS IT, THE TIME IS NOW!

Home prices at record lows, and interest rates at level lower than ever recorded.   Plus, if you are a first time home buyer there is additional incentive.

The Push Me Pull You Mindset

Fear pulls to hold onto the cash, Great prices, and interest rates push you toward making a purchase.   What to do?

This is where the train above comes into the picture.   It isn’t standing still.   It is moving down the track at 60 + mph.   I know, I was driving on I -10 toward El Paso yesterday when I rolled down the window and snapped the picture.

The economy isn’t standing still, it is moving and things are moving and changing rapidly.   There are positive signs in the resale housing market indicating buyers are buying again and sale prices are rising and multiple offers are once again appearing.

Not sure?   Ask!

There are a lot of times in my life when I’m not sure about something.   What do I do?   I ask someone who knows about the subject what they think.   Every situation is different, every home is different, there is no single answer for everyone.   Now is the time to ask.   Find out if this is a good time for you to buy or sell a home.

In the past year we have talked several people out of selling their property once we talked over the options.   They asked, instead of continuing to be caught in the push me pull you they asked and made their decision.

We are in unprecedented times.   But not impossible times.   The Tucson real estate market is stable.   It is in much better shape than other communities in Arizona and other states in the country.

For second home buyers, I’ve never seen a better time to buy in Tucson.   Interest rates are lower than believable (for now) and prices are the lowest in years.

For first time home buyers, I wish these kinds of incentives and opportunities had existed when I bought my first home.   Back then 8% was a good interest rate and there was no PMI, you saved to get the 20% down.

Finally, buy a home because you want a place to live, not because you want a quick return on a real estate investment.