There was an interesting opinion column in the Wall Street Journal on 5/6/08, The Housing Crisis is Over. I recommend that you read the article. Everyone always wants to know when the market has hit bottom because they want to time the market perfectly. However, we all know that few of us ever get to time the market perfectly, whether it is the stock market or the housing market. Who doesn’t wish they had bought stock in Microsoft back at the beginning? Buying a house should not be just about timing the housing market. Buying a house should be based upon personal factors including affordability, how long you plan to live in the area, and your financial situation. Is this the right time for you to buy a home? One of the factors to consider is affordability, which the WSJ article’s writer indicates will be a driving factor in the improvement of the housing market. I agree with this. Home affordability is coming back in line with pre-2005 levels. Interest rates are good and loans are still available. One factor I will be watching for is a decline in inventory of existing homes for sale. I’ll continue to post the numbers here as they become available. (I’m still waiting for ARMLS to post numbers for April.).
There is a follow-up article from the Wall Street Journal on 5/7/08 which is also interesting. In it one college professor offers the opinion that there have to be bargins in Arizona, Florida, and Nevada. The Housing Crisis is Over? There are lots of comments following this article from people all over the country.
Leave a comment here to tell us what you think of the housing market in the East Valley.