I know you have been anxiously awaiting the latest Phoenix real estate update, so here it is! As 2011 draws to a close, we are seeing some continuing signs of true recovery in the Phoenix real estate market despite the gloom and doom that some “media experts” continue to report. That being said, according to one Wall Street expert, we are not quite in recovery but in the stage just before. And a little holiday gift from Fannie Mae, Freddie Mac and other major lenders for those homeowners with pending foreclosures.
Well, it’s another month of basically the same-old, same-old here in the Phoenix Real Estate Market. I decided this month to dig a little deeper to find out why with our dwindling inventory of REO’s and short sale and the high demand, especially among investors (should be another record-setting year for sales) – why are prices still flat. The answer may surprise you!!!
As fall begins here in the Phoenix Metro area, the real estate remains as flat as a pancake for the year. Prices are stable, sales are strong and distressed properties are taking up less of the market share.
For buyers, you still have your work cut out for you as there is not enough inventory to go around, For homeowners, now is the time to take a final assessment of the damage – see where your property value landed so you can make a good assessment and determine if you house is an asset or a liability. It’s time to take control and make a decision – not be a victim of circumstance.
The real estate market can be really tough right now. Buyers, sellers, investors, lenders or real estate agents, we are all having our challenges these days in the Phoenix East Valley market.
Real estate is a team sport, but you don’t get to chose the team, the team chooses you. Listing agents, buyer agents, sellers, buyers, title companies, lenders, contractors, inspectors, short sale squads and more.
Sometimes you look across the table and you say this is a good team, we are going to get the job done. Everyone has the same goal for a successful and smooth transaction. When those problems come up, and you know they will, everyone works together to find a mutually agreeable solution. But sometimes, you look across the table and realize it is not going to be easy and it seems some members of team just want to make it as difficult as possible and you wonder if they even want the transaction to close at all.
What do you do when things get difficult? All you need is love!
Of course our Broker Jay Thompson sees things a little different and says sometimes there is an alternative to love.
Looking to buy a house in the Gilbert or Phoenix East Valley area right now? Prices are low and interest rates are lower, and it seems like there are tons of houses available – scratch that last part! The inventory of homes on the market is dwindling…don’t believe? Just try to find the “typical” house right now….it’s a challenging process.
Want to see how bad it is in late August of 2011? We have just over two months of inventory right now, where is very low and very much a buyers market. Let’s take a closer look at Gilbert housing market right now.
Gilbert average price right now is about 165,000. Let’s look at all houses under $165,000. There are a little over 1200 homes for sale in Gilbert right now, 521 of which are at or less than $165,000.
If you want to make sure your home is at least a 3 bedroom, 2 bath with a 2 car garage that takes you down to 443 homes for sale in Gilbert now.
Many buyers do not want to look at short sales because of the uncertainty and the time it takes to even find out if the bank will approve a short sale, so if we remove those, we are now down to just 153 homes.
And if you want a pool? 25, yes 25 homes in Gilbert will now match your criteria.
Now you see how hard it is to find a house in Gilbert. When you are going shopping, remember, the more you restrict your search, the harder it will be to find a house.
An upcoming dentist appointment reminds me why you shouldn’t put off dentist appointments – or short sales – because you are afraid. One thing about both bad teeth and underwater homes – they don’t get better until you do something about them.
A call at midnight alerted me to the notorious “Kristin Loan Modification Scam” – uh, wrong Kristin, here. In my opinion, loan mods are a total rip-off…
It is kind of ironic to use Kristin’s name to push loan modification scams because Kristin has a long history of calling loan mods what they are, a total waste of time.
There was a good video we did for the site yesterday on Phoenix housing market myths. Some of those myths lead to buyers looking for things that they percieve to be true like the ability to steal a house for pennies on the dollar.
It is amazing how many times we sit down with Gilbert and East Valley home buyers and discuss their housing needs and they say they are looking for a good deal. That is all they want. Well the great news is home buyers in Gilbert and the Phoenix metro area now have the opportunity for the deal of the century.
A normal year in real estate prices will rise between 3%-5% a year. Of course in 2005 things went crazy and 2008 we had a huge price correction. Things kept falling until the beginning of this year and in January of 2011 we had the lowest prices in the 21st Century…. The deal of the Century!
But wait, there is more. Low prices are great, but for extreme couponing low prices are not enough, you need a 30% off coupon too. What is the coupon in this market? Interest rates. Interest rates right now are at historic lows still. If you can get a house for the lowest prices this in a decade, and low interest rates, you are getting a Deal of the Century.
It is summer in Phoenix and the only thing hotter than the weather here is the housing market. Right now there are 29,920 homes for sale in the metro Phoenix and East Valley area MLS. This includes short sales which already have contracts in with the banks being negotiated.
If you look at just the active with no contingencies in the Phoenix MLS there are less than 22,000 active homes for sale. That is LOW! In June there were over 10,500 homes sold in Phoenix which means we have only 2.3 months of inventory for sale. 2.3 months, talk about a hot sellers market.
6 months is balanced market buyers and sellers have balanced market. More than 6 months is a buyers market. Less than 6 months is a sellers market and things move very quick. With 2 months, it is like going into shopping at Target when they have things on sale 75% off in their clearance section. If you go shopping when the store opens you may be able to get a deal, but in a few days from now all that will be left is the left over 4th of July Napkins no one wants.
What about the “shadow inventory?” We have been hearing about this for years now, but the truth is foreclosures have been dropping month-over-month for a while now.
What does this mean for buyers?
1) It is going to be hard to find a house
2) Prices are not going down
3) The second bottom of the market has come and gone
Is Gilbert Arizona better than Chandler Arizona?
East Valley Team member Kristin LaVanway gets ready to make the case why she thinks Gilbert is better than Chandler.
As many of you know the two founding partners for the East Valley Team are Kristin LaVanway and Dean Ouellette. Kristin lives in Gilbert Arizona and Dean lives in Chandler. Kristin thinks Gilbert has the advantage for best Phoenix East Valley community.
Kristin is going to make the case over the next year on why she thinks Gilbert is better than Chandler and Dean will state his case case for Chandler.