Return with us now to those thrilling days of yesteryear. I’m referring to the good times when home prices rose steadily throughout the middle of the last decade. Homeowners beamed at the appreciation that built up year after year.
Then, the bottom dropped out around 2006 and everyone was feeling a little foolish for assuming the boom would last forever. Speculators got into a feeding frenzy as many homeowners were forced to sell at a loss. When would things get back to normal… whatever the new “normal” is?
Over the past year, light has been seen at the end of the tunnel and it’s not an oncoming train. The average sales price of homes in the Prescott area has steadily risen, although they are not yet approaching the heights before the Great Recession. Today’s fair prices, good inventory and still affordable interest rates make a recipe for success. Simply put, the “Affordability Index” (Current Home Prices + Interest Rates + Inflation Rate) says the time to buy is right now.
You might give consideration to your two options when looking for a new real estate investment – build or buy an existing home.
Buying an existing home lets you avoid the hassles of new home construction. Mature landscaping and neighborhoods closer to everything make for a combination that is sure to please from day one. Plus, you can talk with the current neighbors and find out what drew them to there in the first place.
Building a new home from the ground up takes time and additional expenses, but you do get what you want. It’s your choice. If a new home has always been your dream, we can help you with that, too! No one knows Prescott and its surrounding communities like the more than 80 realtors we have in our offices.
In my almost 40 years in the real estate industry, I have seen great markets come and go, yet one thing has always been a constant: the market eventually bounced back from bad times even stronger than what was expected by many experts. Check out Realty Executives of Northern Arizona’s current listing online. It contains all the tools and information you’ll need to make a wise decision. Find it all at www.realtyexecutivesaz.com.
Don Bonnell, broker and owner of Realty Executives of Northern Arizona, represents nine separate offices and manages more than 130 real estate professionals. His background covers the full spectrum of real estate management positions.
Prior to joining Realty Executives of Northern Arizona, he held senior positions at several other nationally known real estate brokerages.
His areas of specialization include turn-around management, real estate operations, sales training and ancillary services implementation.