FROM: Apple Wood Fund, 23335 N 18th Drive Suite 120, Phoenix, Arizona, 85251, www.applewoodfund.com
MEDIA CONTACT: Sandy Dahlberg, General Manager, 602-497-4444, Sandy@applewoodfund.com
FOR IMMEDIATE RELEASE
Arizona leading real estate company, Apple Wood Fund, is today predicting the Wild West Phoenix real estate business is heading for what it is calling a “New Boom Time”. According to the real estate experts, this boom is going to be different from the boom, fueled on greed of the consumer, but this time it will be a supply problem.
“With low inventory and too many buyers, we believe the Phoenix Real Estate Market is on the verge of a new boom in real estate values,” predicts Sandy Cramer, Apple Wood Fund’s General Manager, with many years of flipping and fixing real estate experience.
Over the past six years, according to Dahlberg, there is little construction or movement of dirt, leaving the Phoenix housing market starving for new homes. Besides, he argues, home values are rising dramatically, and once the current home owners get above water (have equity), they are going to want to move up.
“We’re going to have a trifecta or the perfect storm – no homes, pent-up demand, and record low interest rates. And if you throw a little inflation on top of the mix – watch out! Bam! It’s going to be a wild ride – a Wild West ride,” states Dahlberg, who is basing his prediction on data provided by S&P Case Shuller.
According to the S&P Case Shuller’s data, the bottom is over and the market is moving up again and this time it’s going to be even bigger.
The data further suggests the real estate market in the Phoenix area is heading up. However, in response to such questions whether it is time to buy real estate again, how long will it take to come back to normal, or should people get out of the market and wait, Dahlberg believes these are hard questions to answer, nevertheless, offers the following recommendations:
“I’ve talked to a lot of people who feel that they can ‘let their home go and rent for awhile’. Rental rates are lower than their mortgage rates, but we can save a lot of money by renting vs. paying the mortgage, and in two years,” says Dahlberg.
However, Dahlberg points out that “it’s actually going to be 5-7 years before your credit report looks good enough to purchase a home again. And can you really save the money? Most people will spend the money on toys. If hyper-inflation hits, like some economists predict, then you’ll be priced out of the market. Do you want to take the chance? Keep your home, do a HARP 2 Mortgage modification, and hang on – the next 5-7 years are going to be enjoyable.?