In Phoenix- the Housing Market Heats Up

By
Real Estate Agent with BuyLowAZ

This may come as news to a few of you, but not to those who are currently in the market, but.... after a very long pause,  the Phoenix metro area housing market is hot.

Make that sizzling.

Here are some of the hot points:

  • The inventory of homes is reducing rapidly. There used to be a one-year+ inventory of homes in the metro area. That has dwindled, county wide, to just over five months. In some cities it's even lower. For the first time in 3.5 years we are not in a "buyer's market". We are in that equilibrium phase. For buyers in the south and southeast valley it's a different story. It's turning into a seller's market.
  • There is a return to multiple offers. Homes that are priced lower than others in the neighborhood are often receiving multiple offers. Three of my clients in the past month have submitted full price offers that have been rejected. In each case there was a multiple offer situation with buyers encouraged to submit "highest and best" offers. The most recent offer I sent in joined a list of 13 others.
  • New Home inventory is way down. Over the last few years it was possible to go into almost any new home development and pick out a home from a list of inventory homes. Now, the inventory is vastly reduced or non-existent in many areas. In such areas, buyers of new homes will do what had been done in previous years: order one to be built from the ground up.
  • The "low end" is hot. Homes that have hit the foreclosure market have been priced very low over the past couple years. Such homes allowed the first time home buyer and investor the opportunity to get in on deals that hadn't previously existed. Now, the prices of these homes are starting to climb. For the past three months there has been a trend reversal- home prices (on a cost per square foot basis) have been rising.

No one can predict the future.

However, for those who like to spot trends, it's undeniable. The signs one looks for are becoming easier to spot:

  • Homes are selling more quickly.
  • There are fewer to choose from.
  • Prices are beginning to rise.

Is it a full-bloom recovery or a momentary blip on the chart?

That's the question many are asking. As my clients are discovering- it's getting much harder to buy a home. "Low-ball" offers aren't working. Even full price offers are being rejected. So, if you're wanting to purchase a home in Arizona- it's time to jump in again. If the trend continues, it's going to be harder to find that bargain home.

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Chuck Willman is a real estate agent in the Phoenix metro area. 480.292.0600.

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Ambassador
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Debe Maxwell
www.AtHomesCharlotte.com | Savvy + Company Real Estate - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

WooHoo--I LOVE the word sizzling when you're referring to REAL ESTATE!  And, you're right, low-balls are NOT working either!

Debe in Charlotte

 

Jun 24, 2009 09:41 AM #1
Rainer
11,760
Stacey Champion
Champion Indoor Environmental Services, LLC/Champion Indoors, LLC - Phoenix, AZ

I agree that the market is picking back up (based on my own biz as of late...)  My hope is that an important lesson is/was learned from everything crashing down around us - the HUGE need for more "organic" sustainable growth... 

Just as there is a shift from profit-driven businesses to VALUE-driven businesses, hopefully the greed which took place will be more subdued in the future.

Thanks.

-Stacey Champion

Jun 27, 2009 03:33 AM #2
Rainmaker
412,458
Mesa, Arizona Real Estate Mesa Arizona Realtor
Teri Ellis at Homes Arizona Real Estate LLC - Mesa, AZ

Chuck, you are so right. I'm holding my breath right now on the fourth offer for a buyer - this time, we offered 10K over and included closing costs. Who knows if it'll work....we'll have to see. Crazy though...and appraisals? another story. Good to see you back on the Rain. ;-)

Jun 28, 2009 12:09 AM #3
Ambassador
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Chuck,

You're the first person I've read on Active Rain to say "sizzling."  I can say I read it here first!

Mike in Tucson

Jul 01, 2009 10:08 AM #4
Ambassador
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Lee & Pamela St. Peter
Berkshire Hathaway HomeServices YSU Realty: (919) 645-2522 - Raleigh, NC
Making Connections to Success in Real Estate

Wonderful news Chuck - I'm happy to hear your market is equalized!  We're still a buyers market but things are certainly picking up! 

Jul 02, 2009 10:22 AM #5
Ambassador
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Pima county foreclosuresChuck,

I came back because the Tucson paper's big story this week was the level of foreclosures in Pima county.  The newspaper used the word "sizzling" to describe it.  I like your use of the word better!

Mike in Tucson

Aug 09, 2009 05:58 AM #6
Rainer
74,713
Dan Hartman
Province Mortgage Associates - NMLS #2861 - Providence, RI

Chuck,

We're seeing similar things here in Providence. Inventory is falling, and, while there are still some real "clunkers" on MLS, the good properties are on fire. Hope you're staying busy!

Dan

Aug 10, 2009 07:36 PM #7
Rainmaker
259,999
Mara Hawks
First Realty Auburn - Auburn, AL
Inactive-2012 REALTOR - Homes for Sale Auburn Real Estate, AL

hey Chuck, I know you're not here much these days. I've been away a lot this summer, trying to keep up with work & planning for my daughter's wedding which was recently. Just wanted you to know that you're missed here, but still much thought of...hope you are doing well and that, in all the little things, your days are won of greatness...all the best to you & your beautiful family :-)

Sep 08, 2009 10:35 AM #8
Rainer
23,877
Rashel Beaver
REALTORĀ® - Phoenix - 480.734.3787 - Realty ONE Group - Phoenix, AZ

Hi Chuck-

Nice post . . .

Well we're into September, and properties are still flying off the shelves. There are more and more equity listings, or should I say flips hitting the market which is difficult for my FHA buyers since most of them have had a title change under 90 days ago. Always some challenge. Bring it on though!

Rashel

Sep 24, 2009 11:09 AM #9
Ambassador
721,596
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Chuck WillmanChuck,

This comment will change the nice round number I saw when I came to your profile page, so I saved a screen shot for you.  Congrats on a milestone!

Mike in Tucson

Oct 20, 2009 09:52 AM #10
Rainmaker
271,518
Chuck Willman
BuyLowAZ - Mesa, AZ
Realtor - Arizona - 480.292.0600

Ha! ... So good to speak with you again Mike. Yes... the market is still "sizzling" in the foreclosure arena. We're turning homes quite quickly- of course it requires a tremendous amount of due diligence to make sure one is: buying a first mortgage, purchasing in an area that has stability and is buying a home with "good bones".

Oct 20, 2009 09:59 AM #11
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Rainmaker
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Chuck Willman

Realtor - Arizona - 480.292.0600
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