PHOENIX — The housing market is cooling down, and it's putting fear in a lot of people. But financial experts say now is the time to buy - especially in Phoenix.
“It's getting back to normal, and I think that's a healthy good place to be it feels way more steady,” said personal finance expert Rachel Cruze.
Financial expert Dave Ramsey said buyers should expect higher mortgages than six months ago.
>> Live, local, breaking. Download the 12 News app
“Reality is, house prices are not going to go down to fix this. So I still need to get into the market, I've got to adjust my expectations,” Ramsey said.
In addition, he said sellers can’t expect to sell for more than the appraised value
These factors were considered normal before the pandemic, but with inflation at a 40-year high, it doesn’t feel normal for many people.
“Living paycheck to paycheck is just a hard reality,” said Charles Luong, the CEO of Endeavor Advisors LLC.
Luong said single buyers need to be flexible in the path to home ownership, by living in a less desirable place, townhome, or condo.
He said for a 2-income household, “You probably just need a combined income of about $100,000 or $120,000. You just got to make sure your finances are set and you're under 30% of your gross income for the mortgage payment.
If you don’t have the cash, Luong said building your savings is key, even if it takes longer due to inflation. He advises that buyers enter a 3-year plan to increase savings by getting a second income.
Ramsey and Cruze will be hosting a free zoom seminar this Thursday titled “Real Estate Reality Check”.
VERSIÓN EN ESPAÑOL: Cómo prepararse para comprar su primera casa en el Valle
Up to Speed
Catch up on the latest news and stories on the 12 News YouTube channel. Subscribe today.