By Joseph Callaway
Two fronts are closing in on the 85254 real estate market.
The first front is the recent return to a normal inventory and a balanced market beneficial to both the buyer and sellers. Today there are around 175 homes for sale in the zip code, which is a three-month supply if 60 sell per month. This means buyers have a good selection and sellers must be negotiable. Prices have returned to January levels after the recent spring bubble, which has come and gone. All this bodes well for sales in 85254.
The second front is unique and has only occurred a few times since 1950. Today, mortgage interest rates are around 5% and inflation is closer to 10%. In this situation you get to borrow dollars at a low cost and repay with even cheaper dollars. Look for this to resolve itself soon with either rates going up or inflation coming down, but for now buying real estate with a mortgage is like getting free money.
As these two fronts collide, we will find ourselves in the perfect real estate storm. Buy now. If you want to sell, sell now, and buy your next home. If you have depreciating cash in a savings account, buy an investment property and get on the inflation gravy train.
Enjoy the rain, it won’t last forever.
Joseph Callaway is the owner of Those Callaways and Callaway Realty. He branded 85254 as “The magic zip code” and has sold more than 1000 homes in 85254. His cell is 602-796-5751.