Where is the Phoenix Real Estate Market heading?

chandler real estate marketIf only we had that crystal ball.  However, we are receiving encouraging news of a recovery from the “experts”.  For us lowly agents out in the field, I can tell you without a doubt that the market is definitely the best it’s been in years.  Why? Inventory has dropped.  We are in a housing shortage and buyers are finding out (often times the hard way) that it’s not the “buyer’s market” they’ve been lead to believe it is by the media.

Take for example the home  I listed on Monday for just under $400,000…less than 24 hours later we are under contract with a full-price offer with other buyers chomping at the bit with their back-up offers.  This home is a traditional resale in move-in ready condition and exactly the type of home buyers are drooling for in today’s market.

Most of the buyers I’ve come into contact with are from out of state.  Relocating to Chandler and the surrounding East Valley area with their jobs.  This is the second positive note in the story.  JOBS!  We all know we’re not going to recover fully until the job market improves, and if the number of buyers that are moving here is an indication..I say we’re on the road to recovery.

One really great piece of optimism is the fact that foreclosure numbers are dropping in the Phoenix metro area and we are at the lowest levels since 2007.  This is music to everyone’s ears.  Banks that have been “dumping” their foreclosures into the market have had the biggest impact on falling values since this whole mess began.

Interestingly, our home prices have not begun to rise which is shocking when you hear buyers are bidding on homes.  Part of that may be due to loan underwriter’s policies with respect to appraisals.  Some underwriters will not allow a home’s value to be used if it sold above the sales price (which is happening once again) if the buyer paid cash.  This amazingly stupid (in my humble opinion) rule needs to be vetoed.  How are home prices going to ever begin to rise if underwriters only want to see values below the most recent sales?

So, if you’re a buyer who’s been sitting on the fence waiting for the Phoenix area real estate market to “hit bottom”…I think all you’re going to have is a sore behind from sitting way too long while sellers have again been awarded the upper hand and your low-ball offer is going to be laughed at.  So get off that fence!  Get out there and write an offer before prices start to rise, which shouldn’t be too long!

About The Amy Jones Group

Mindy Jones Nevarez is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones Real Estate Group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.