Last night I ran a search for a home for a young couple with two children. Mind you, this couple initially only thought about renting as they were concerned about the market continuing its slide. I shared with them my thoughts on the market and I wanted to share with you those thoughts.

Technically, we can now look back to when the slide officially began. The Phoenix market began to round off in October of 2005 and started downward around Spring of 2006.  So officially, we have been in a declining market for over two years. This being said, prices have come to a point in many areas that allow for homes to be purchased at levels "pre-bubble".

One of the indications that I have been watching is the Rent Rate vs. Mortgage payment comparisons. You can talk to your lender about this one. I can tell you that if you are purchasing a home under $180,000, depending on a number of factors I would be happy to discuss with you, your payment should be pretty close to what rent payments are in that area.

Why is that so significant? Not only does that cause renters to think twice about renting or buying, but investors love to see that they can cover the costs of a rental with a rent payment. When you realize that most investors are putting down 20% when they purchase investment properties, that most certainly brings the rent/mortgage payment even closer.

How does this affect the normal buyer? Competition for these affordable homes is picking up speed. The last several offers that I have written, ended up having multiple offers. Does this mean that the market has bottomed? We won't know right away. Once we hear that news from the mainstream media, we will certainly have passed the "bottom".

One more thing...You may ask "what type of home can you possibly find for 180K?" The answer may surprise you.

Please contact me if you have any questions about this article or if you need some assistance buying or selling today.