So many ask me where the market is heading. I typically like to hear what the inquisitor has heard before I answer. Some think that the market is heading for a fall, and this is not necessarily the case, especially for our local Phoenix Metropolitan market. What happened in 2008 was a lender based crash, with stated income loans and not fully documented loans. A home buyer at that time could simply state what they made and the verification process was very lapsed, to say the least. And when the economy began to shift, many were unable to fulfill their obligations, and foreclosures ensued. After the crash, new lending policies were put into place, to protect such a catastrophe from happening again. Most people that purchased even as little as 2 years ago have a mass amount of equity in their homes, regardless of the average 7% decline in property values. The loans they have are highly secure due to in many cases, massive downpayments or even an outright cash purchase. Although foreclosures will happen in any market, due to personal scenarios, the idea that our market will be flooded with foreclosures in the current economic market is highly unlikely. The reduction in values brings me to the title of this blog…. Some buyers and sellers will say today that a year ago they could have made $100K more than current day, and therefore are feeling as though they missed the boat and taking a loss. The thing to remember is that yes, a year ago they could have made substantially more, however they would have also paid more. You can sell and buy in a high market or low market, the result of what you make and spend is “relative” to the specific market at any given time. If you’re looking to sell and buy, and are in it for the long term, last year, now or anytime are great times to do it. Short term consumers are the people that need to be much more analytical of a current market and try to forecast. If you’re thinking of jumping into the real estate market, give me a call and we can discuss your specific needs and with my help and the help from a lender and possible your financial advisor and accountant, you may be amazed at what’s possible!