Good news for metro Phoenix is that home values are on the rise, by more than 35 percent in November. As I’m shopping with home buyers seeking homes in the Valley of the Sun under the 250K price range, I’m seeing less foreclosures and short sales, in fact appear to be drying up. What does this mean?
This could mean that an inventory of homes will show less and demand for homes could be something new for the Phoenix real estate market. Don’t get me wrong, there are plenty of homes to pick from but signs of prices are moving in the opposite direction from what we have been seeing with the real estate crisis here in the Phoenix real estate market.
“As metro Phoenix home values surged and foreclosures and short sales waned throughout last year, homes priced at the lower end of the market have received the bulk of the attention,” says Kristena Hansen with the Phoenix Business Journal.
Working for buyers looking to purchase a home in the Phoenix metro area under the 250K mark is not an easy journey. There is much to educate a buyer, especially if they are a first time buyer. There seems to be a battle of the fittest with multiple offers, strategies and getting an offer to stick if your a buyer that is financing. As an agent, I spend a lot of time before we start looking for homes with a client to educate them of the current market they are going to be looking. Making sure that the client is well versed and prepared with lining up their financing if they are using a lender. Being prepared, I believe ready and agressive buyers are going to be the buyer who lands the accepted offer in a low-inventory market.
What is Supply and Demand in Real Estate?
Supply is the type and amount of real estate available for sale at given price levels in a given real estate market. Demand is the type and amount of real estate desired for purchase in a given real estate market in a period of time.
So basically, when supply increases and demand remains stable, prices go down. When demand increases and supply remains stable, prices go up. Greater supply means more buyers need to be attracted and so prices go lower. Greater demands mean sellers can raise their prices because buyers compete for the real estate.
I see slight shifts in the prices here in the Phoenix area and many statistics are showing improvements. We are seeing more and more homes on the market that are traditional sales and that is good, sellers that aren’t effected by the pay-offs of their note and are able to either break even or have some profit of their investment is good.
For more in detail report from Michael Orr with ASU can be found here.