Buying Your First Home Is Almost Always Difficult

Category: Finance, Real Estate.

Buying your first home is almost always difficult. It becomes even more difficult if you are competing for homes in a competitive real estate market like Arizona.

It is hard to switch from paying rent to paying a higher mortgage amount. Home prices increased substantially throughout Arizona. And what better way to make a profit than to buy a run- down home, make a few improvements, and sell for a substantial increase in price. The market began to attract out- of- state and some in- state investors who viewed the strong business environment and phenomenal population growth as a driving force for profits. This process of buying and selling quickly has been referred to as flipping property, because the home changes hands so quickly. Unfortunately, these real estate investors are tapping into the housing market that traditionally was the domain of the first- time buyer. Flipping has received a great deal of national press in the last couple of years, and is the preferred method for many late- night infomercial sales people.

Many first- time buyers look for homes in need of cosmetic repairs or even major renovations because they tend to be either undervalued or lower in price than comparable properties. While the early market frenzy did bring a lot of investors into the real estate market last year, this year trends show sales and appreciation are slowing. What better way to begin building saving than to put in a little sweat equity to bring the home up to par? That means there is more opportunity for home buyers, especially those first- time buyers that are looking for less expensive properties. According to the latest statistics, home foreclosures are up by 9% this year. Another important consideration is the increasing rate of real estate foreclosures.

When these properties become available, it is another source of lower priced real estate. There will be more belt tightening among consumers, and that will eventually account for more homes on the market in less than pristine condition. As the real estate appreciation rates begin to level off throughout Arizona, fewer home owners will invest money in upgrading their homes for a quick sale. If you are the type of buyer that is willing to invest your time and energy in a property, as well as your money, you will find that there are still some great deals available for first- time buyers. Do not be put off by flippers, with time and care, you can build a home you enjoy and wealth for your future. Arizona still has great real estate potential and there is no better time for first- time buyers to dive into the market.