Arizona Real Estate Specialist Predicts New Real Estate Boom on The Horizon!

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Arizona Real Estate Specialist Predicts New Real Estate Boom on The Horizon!

PRESS RELEASE

FROM: Level 4 Funding LLC, 23335 N 18th Drive Suite 120, Phoenix, Arizona, 85027, www.Level4funding.com

MEDIA CONTACT:  Dennis Dahlberg, General Manager, 623-582-4444, dennis@level4funding.com

FOR IMMEDIATE RELEASE

Arizona Real Estate Specialist Predicts New Real Estate Boom on The Horizon!

Arizona leading real estate company, Level 4 Funding LLC, is today predicting the Wild West Phoenix real estate business is heading for what it is calling a “New Boom Time”.  According to the real estate experts, this boom is going to be different from the boom, fueled on greed of the consumer, but this time it will be a supply problem.

“With low inventory and too many buyers, we believe the Phoenix Real Estate Market is on the verge of a new boom in real estate values,” predicts Dennis Dahlberg, Level 4 Funding’s General Manager, with many years of flipping and fixing real estate experience.

Over the past six years, according to Dahlberg, there is little construction or movement of dirt, leaving the Phoenix housing market starving for new homes. Besides, he argues, home values are rising dramatically, and once the current home owners get above water (have equity), they are going to want to move up.

“We’re going to have a trifecta or the perfect storm – no homes, pent-up demand, and record low interest rates.  And if you throw a little inflation on top of the mix – watch out!  Bam! It’s going to be a wild ride – a Wild West ride,” states Dahlberg, who is basing his prediction on data provided by S&P Case Shuller.

According to the S&P Case Shuller’s data, the bottom is over and the market is moving up again and this time it’s going to be even bigger.

The data further suggests the real estate market in the Phoenix area is heading up. However, in response to such questions whether it is time to buy real estate again, how long will it take to come back to normal, or should people get out of the market and wait, Dahlberg believes these are hard questions to answer, nevertheless, offers the following recommendations:

  • Home values will not return to the trend line for another 1-2 years. Latest trend shows Phoenix back to the highs starting July 2014.
  • The upturn in values is due to lack of inventory and record low interest rates.
  • Keep your home if possible.  Do whatever it takes to keep the current home.
  • Do a Mortgage modification? HAPR 2.  It’s possible but there are very few who are successful.
  • If you ‘bail out’ and let the bank foreclose, you will not be able to purchase a home for 5-7 years, maybe even never again.
  •  Inflation will come back and will the value of the dollar drop dramatically?  (This could change if the USA will cut spending and raise taxes, cut medical/social security, and increase the tax rate by 45 per cent. I don’t think this will happen.).
  • The amount of debt in the USA will continue to grow. The amount is very frightening.
  •  At this rate, in 5-7 years, it will cost $10 to buy a loaf of bread.  Gasoline will cost $25/gallon. And the average starter home price will be $600,000.
  • Get out of debt; get rid of the credit cards and pay them off.  Purchase only if you have the cash.  Do not get into any debt.
  • Start a side business.  It’s too difficult to explain why here, but the best reason is the potential tax advantage and the possible income.  Your own side business is the LAST area the government has yet to attack.  Make it simple and get going.  An extra $400 per month really helps.
  • If you are able, purchase quality single family homes in a good area and turn them into rental units.

“I’ve talked to a lot of people who feel that they can ‘let their home go and rent for awhile’.  Rental rates are lower than their mortgage rates, but we can save a lot of money by renting vs. paying the mortgage, and in two years,” says Dahlberg.

However, Dahlberg points out that “it’s actually going to be 5-7 years before your credit report looks good enough to purchase a home again.  And can you really save the money?  Most people will spend the money on toys.  If hyper-inflation hits, like some economists predict, then you’ll be priced out of the market. Do you want to take the chance?  Keep your home, do a HARP 2 Mortgage modification, and hang on – the next 5-7 years are going to be enjoyable.?

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