The Market

As of July 14, 2011 the market in Arizona is at an all time low. Inventory has dipped below the 17,000 unit mark for single family detached homes within Maricopa county. What does this mean to the buyer?  Well it brings us back to Supply and Demand. There still is a demand for housing in the state and county, it has not decreased much, but the inventory or supply of homes is way down making it difficult for buyers to find the home they want. 

I recently looked for active homes in Litchfield Park, single family detached and not a short sale home and found only 61 homes available and most of them were Lender or agent owned homes. When you narrow it down to what you really want, such as a 3 bedroom, 2 bath with a 2 car garage and maybe a pool, the numbers decrease rapidly.

Those are not bad but if you looking for a home that is NOT a short sale then your choices are very limited. Other cities are having similar results, Goodyear has less than 500 homes, Avondale less than 300, and it goes on and on. 

You may ask, what about all those foreclosed homes? Well the lenders are still holding onto them, over 4 million nationwide. Why you ask? I am not an expert in economics but it is my belief that they are holding them so they can drive the market prices back up, because if the supply is low the prices are bound to go up. If they dumped them on the market, the market will become flooded and prices will drop to where they will have to pay us to take the homes. And, well there is a problem with this idea, yes the prices may go up and we are seeing some of that happening, but the appraisors are not able to appraise a home based on future sales, they go by what has sold in the past and if the prices are low in the area, even if the sales price is higher they may not appraise to the higher price but to what has sold already and that is a lower price. 

The bottom line is that it is going to take time to recover. If you are considering buying, now is the time. Prices are inching up and will continue to do so.  Time to get back to a normal market is questionable but it is in the future somewhere.  If you are considering selling, and do not want to do a short sale, you may want to hold off a while then call us. 

This is how I see the market today July 14, 2011 in Goodyear Arizona.

Thank you

Dave McIntosh
Broker
Arizona Blue Sky Realty, LLC


  

Arizona Blue Sky Realty
15661 W Roosevelt St.
Suite 105
Goodyear, AZ 85338
623.853.0925
1-877-892-5832
Fax 623.925.4785

The Intelligent Choice!


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