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New Homes Phoenix - Buying a New Home In Phoenix

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In the days before the crisis in the subprime mortgage industry almost brought the American economy grinding to a halt, Arizona was one of the hottest real estate markets in the United States, and Phoenix was one of the hottest real estate markets in Arizona. New houses in Phoenix were popping up faster than mushrooms after a storm.

Since the Phoenix housing market’s peak, real property values have plummeted. Phoenix home prices have plunged between 30 to 60%. Phoenix homes have one of the lowest home equity to home value ratios in the nation at -.1%. The number of foreclosures has soared.

The Arizona real estate market does appear to be making a comeback according to figures recently released by Fidelity National Title, an Arizona title insurance and escrow service company. But supply still exceeds demand: the inventory of existing homes on the market is still far greater than the number of available buyers. Between 33 and 50% of the Phoenix real estate supply was owned by investors who had no intention of living in the houses they’d purchased. With unemployment soaring and indications that people are leaving Phoenix in search of employment, these investors find themselves owning property that is no longer an asset. They are anxious to unload it. Analysts estimate that the excess housing supply in the Phoenix area is in the order of 25,000 homes.

What does this mean for you? It’s still a buyers market: Phoenix new homes have never been more affordable. If you are thinking of buying a new home in Phoenix, now is the time to do it. Eight hundred dollars a month will buy you a brand new home, making purchasing a house a less expensive option than renting one for most people.

Some Places To Look For a New Home In Phoenix

• The Biltmore Area: The neighborhood around the landmark Arizona Biltmore Hotel is home to some of Phoenix’s most upscale residences as well as a section of mid-rise offices and condominiums known as the Camelback Corridor. Homes range between $100,000 for a fixer-upper to well over $10,000,000 for homes in the vicinity of the hotel itself.

• Downtown Phoenix: The city’s downtown area, formally defined as one and a half square miles centered around the intersection of Washington Street and Central Avenue, contains many historic districts with architecture reflecting Victorian, Bungalow, Period Revival and Ranch House styles as well as new condominiums.

• Arcadia: Until the mid-1950s when its first ranch homes were built, the Arcadia neighborhood was citrus groves and the occasional farmhouse. At the height of the real estate boom, many of the original ranch homes were being torn down, to be replaced with mansions in a variety of architectural styles ranging from French Provincial to contemporary Santa Barbara.

• North Foothills: This neighborhood in the foothills of the Phoenix Mountains, nine miles north of Phoenix’s downtown, features small town friendliness with all the cultural amenities of life in a major American city.

How To Buy a New Home In Phoenix

Buying a new home in Phoenix or anywhere else is a huge step for most people. Potential buyers are in the advantageous position to negotiate bargains if:

• They are able to pay cash. When a buyer pays cash, not only does he or she avoid paying thousands of dollars of interest on a loan but the buyer also avoids the costly property inspections most banks and other lending institutions demand before they will issue a mortgage.

• Loan pre-approval. If a buyer is not able to pay cash, the next best thing is pre-approval from a bank or lending institution. This shortens the 30-day closing period considerably and may even entice the seller into settling for less since he or she knows with confidence that the money is there. Buyers benefit because they know the exact price at which they can buy and will not waste time looking at new homes they cannot possibly afford.

• A large down payment. When a buyer is able to make a large down payment on a new home, the bank or lending institution financing the rest of the purchase sees the loan they are making as a low risk loan and will offer the best terms and rates.

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