We got a briefing today from our affilated mortgage company regarding future trends for the Phoenix area.
Our home pricing trends will be affected by several recent news items. First is a news item I heard on the radio several days ago announcing that a record number of "foreclosure related" letters will be going out to Phoenix area homeowners this month.
Second, the federal downpayment assistance programs for first time homebuyers are going away on October 1 of this year. And third, about 5,000 adjustable rate mortgages in the Phoenix area will be resetting before December.
All this adds up to fewer buyers eligible for loans and mortgage payment increases for 5,000 additional home owners.
So, it ain't over yet. Predictions are currently that the downward pressure on home prices will continue through most of 2009.
Two bright spots showed up however. Since the Fanny Mae and Freddie Mac takeovers by the government, mortgage rates have fallen back into the high 5% area. And, there are a lot of very good buys out there for homes. You need to be selective but you can find very good buys on good homes if you look around.
You takes your positive news where you can get it.
Contact me if you have questions that are specific you your particular home or financial situation.
Richard
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Richard