My partner Kristin LaVanway did a video about the Phoenix real estate market. This is a follow up video talking about the three biggest myths in today’s East Valley housing market.
Myth number 1: This is a buyers market. This one could not be further from the truth. With an active inventory of roughly two months, and no signs of growing, this is very much a seller’s market. If you are a buyer be ready to come with highest and best and do not be surprised if that full price offer is not accepted because you were beat out by three other offers, two of which were cash investors.
Myth number 2: Shadow inventory will drive prices down again. Yea, yea, yea. I can remember clearly the first time I heard about the tsunami of shadow inventory coming. Was over two years ago. While there has been a steady flood of homes hitting the market, in no way were we hit nor will we be hit with this shadow inventory. Even if there was a huge supply of houses, there are plenty of buyers out here who would be more than willing to snatch them up.
Myth number 3: Short sales are getting easier. Short sales are moving faster now in some cases because both the short sale agents and lenders have better systems in place, but in no way are they getting easier to get completed. Banks are starting to make more and more demands on the sellers, buyers and agents. Banks are fighting for every penny they can get, and in a way you cannot blame them. So while we are still getting over 85% of our short sales closed successfully, the banks are in no way making it easier to do.
What you hear on the national news does not always meet the reality of what is going on in Chandler, Gilbert or the rest of the Phoenix market. Remember, all real estate is local, and the real estate market is always changing.