If you were thinking about when would be the time to purchase a vacation home in Phoenix or second home for an investment, you’re not alone.  Many people across the country are starting to look at markets that have declined drastically to pick up a vacation home or rental home.  According to this Reuters article, locally, prices in Phoenix are down 54%, and nationally, prices for single-family U.S. homes fell by 3.1 percent in January over the previous year, the seventh-straight month of declines.

Where are the major influx of buyers coming from in these hardest hit markets?  Actually, Canadian buyers are doing quite well because of the strength against the US Dollar, but the fact of the matter is, the cost of money is still cheap and interest rates in the US are still low.  Which means that if you have the cash or the credit, it might be worth your while to swoop in and purchase the home you always dreamed of having.  Why not make that place in the sunshine?

Keep in mind, all of this would support a long term strategy, not a short term strategy.  According to the experts, US real estate recovery could be years off but there a lot of deals for individuals that have a long term vision for investment.

I know what you’re thinking…where would be the best place to break out of these wintery months?  A vacation home in Phoenix could be just what you were hoping for.

http://www.reuters.com/article/2011/03/31/us-wealthmanager-ushousing-idUSTRE72U6YW20110331