I am currently in West Phoenix (Goodyear to be exact). My husband and I are moving out of state in September. We just bought our house in Dec 2005. There are literally 4 houses for sale on our block alone, and tons in the Goodyear area. The prices are also not nearly what we hoped they’d be. And the house across the street from ours has been on the market for over 6 months!
But I ran the numbers and it looks like even if we rent it out we will still be paying $400 per month toward our mortgage, not including paying for a property manager. We could afford it, but not for too long. The only good thing is there is supposed to be a mall and baseball training stadium built in 2008 and 2009 just minutes from us, which should hopefully raise the property value.
Is it worth it to hold it, pay all the extra costs and hope that the values and market increase?[confused2]
Many are suggesting that markets like Pheonix are not going to continue rising at this point. The bubble has burst and since many of these markets were inflated, they’re now suffering because the values are way to high for the homeowners.
Here’s a classic example of what I’m saying:
http://money.cnn.com/popups/2006/fortune/invguide_realestate/4.html
According to the “experts”, the values are expected to go down in Pheonix by 8.6% over the next two years.
Derek Guyer
http://www.landchasers.com
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