Where's the market?
I am currently on my way to
One of the many factors that affect the exchange is the price of oil. Many
But perception has a lot to do with it. Many of the 2nd home buyers feel that prices will decrease further, and they also want to wait for a more even exchange. The problem is that typically many of these economic factors tend to balance out. For example for people taking loans, the interest rates are at near record lows. As the economy strengthens, these rates will start to go back up, and so will home prices. Historically, we have seen times where interest was low when prices were high, to balance and encourage more people to buy. This is not one of them. The prices are now down, and since the economy is slow, interest rates have been lowered to encourage movement.
One positive sign that this may be working is the inventory level for real estate in the
So, what does it really mean? Still to early to say for sure, but I like the signs I see. Now is a good time to buy for anyone not worried about their employment situation. As I said prices are low, and so are interest rates. That is the typical formula for a good time to buy. Many foreign nationals considering a purchase are now looking at taking loans instead of paying cash. This will allow them to obtain the great prices now, and the ability to pay off the loan when exchange rates improve. Locals should take heed of this as well.
A bit long for a blog post, but sometimes the mind gets ramblin’.
I look forward to hearing the perceptions of my Canadian colleagues on this trip, and will share them via video blog as well.
Adam Tarr, ABR,ePro,RSPS,CNE
Associate Broker
RE/MAX Excalibur
480-236-7374
adam@WeAreAZRealEstate.com