Phoenix’s Crazy Real Estate Market
If you don’t like the real estate market in Phoenix & the Valley of the Sun , just wait a minute, it’s sure to change. Here are a few observations, just in the last several weeks:
1. There are more and more listings coming on the market, but buyers are being shut out, unless they have cash in hand, & are ready to bid way higher than list price.
2. I’m getting lots of email flyers from realtors who are advertising that their listings are “pre-MLS” There is such great compeitition to buy almost anything on the market, that houses are being sold before they go on MLS, & are coming onto MLS as already under contract. One realtor tour last week touted that 6 out of 10 houses on tour were pre-MLS.
3. Since buyers don’t always have the luxury of thinking over their purchase before they make an offer, they may have the highest bid, but after thinking about it, they let it go, & it comes “Back On Market” in MLS. Investors who are bidding sight unseen, often figure out after they win the bid that they can’t rehab, and sell, and make a profit, so they let it go back on the market.
4. If the house was bid up above list price, which many are, and the buyer in first position backs out, then it comes back on the market at the bid that was highest over list price, so we see “Back On Market” at a higher price than a couple of weeks ago.
5. I am seeing more higher priced houses on the market these days. The over $300,000 houses stay on the market a bit longer, but ultimately they also go for more than listed prices.
6. Even in December 2011, you could still find houses for under $100,000 in the main areas of the valley. Now you are not seeing anything under $100,000 unless you are a long ways out.
7. There are not nearly as many bank owned/foreclosures coming onto the market as there were even a few months ago. Short sales are more common as banks try & mitigate their losses by allowing short sales instead of forcing foreclosure, even if the seller hasn’t paid mortgage payments for months.
8. Buyers expecting to get a bargain, are surprised to find escalating prices and bidding wars. Buyers who need mortgage approval & appraisals are getting shut out by investors.
9. Investors now make up around 50% of the buyers, & Foreign nationals, such as Canadians make up another 24%. There’s not much left for the ordinary person who just wants to buy one house.
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Mary Maxie, Associate Broker, Prudential Arizona Properties
Frequent updates at my blog www.marymaxie.com