We got several responses to last weeks blog; some in agreement and some in disagreement. One of the people who disagreed with the assessment said that the only reason that "actively for sale" properties are down is because a person would have to be "crazy" to try to sell their homes or condos in today's market. The person was responding to my point that currently there are approximately 6,300 homes or condominiums actively for sale each month, a number almost half of the very high numbers we saw during the depths of our bust.
No one can know the mind-set of all the various sellers or potential sellers in the Valley. Additionally, the evidence does not support this person's opinion. "Closings", the number of properties that sell each month, are way up. In fact, in Phoenix as a whole, the number of closings each month is approximately 1,700 homes and condos. That's over four times as many as in January 2008, the period with the fewest closings in seven years. The 1,700 is as many as what was selling in 2004 and 2005, the boom years in Phoenix.
Some people don't want to see the new reality, that market activity is up, more and more people are buying, and as a result, inventory is going down. Now, just like I said last week, these numbers are for real estate in the Valley as a whole and are not condominium or urban condo specific. While some urban condo buildings have not yet "hit bottom" there are many others that are performing nicely and offer great buying opportunities. At We Know Urban Realty, we study the urban market daily, we analyze the numbers, we talk to other experts, and we develop solid buying and selling strategies for our clients. If you are considering buying a high rise condo or loft, give us a call.