Phoenix Area Real Estate Making Positive Strides Towards a Balanced Market


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What’s the one thing that homeowners love to hear about their property? They love it when prices are on the rise and in today’s marketplace we are finally seeing that happen. In fact, like much of the nation where large pockets of regional areas are experiencing the same market conditions as the Phoenix metro, we are on a real estate upswing!

What does that mean to you as a homeowner? It means that price gains are back in the picture. But not for the traditional reasons you may be expecting. Rather, there are three main things driving our prices up.

OVERALL IMPROVEMENT IN OUR ECONOMY
Now that all the political drama from last year is over (Presidential election, fiscal cliff crisis) there is a lot of pent up demand and buyers are out there on the prowl. Jobs and consumer confidence are stronger. The first thing we see impacted is our housing market and naturally the more homes that sell the higher the prices will go as more and more buyer interest spikes continued demand.

MASSIVE DECREASE IN DISTRESSED PROPERTIES
During the past two to three years we have had a lot of distressed properties on the market in our region. Short sales and foreclosures made up a large percentage of our inventory on hand, leading to a marketplace that was moving very slowly. Today it’s a different picture altogether. With fewer distressed properties on the market we are seeing more traditional sales take place, a factor that contributes greatly to a normal market environment.

FAST DECLINING INVENTORY OF HOMES
Interest rates are still very low, buyers are eager to lock in those rates and as a result we are experiencing unprecedented low inventory levels. Just a few years ago we had fifty to sixty thousand homes for sale. In a normal market there are twenty to twenty five thousand properties on the market but today we have just twelve thousand properties for buyers to consider. This sharp decline in availability has spiked an increase in demand and price.

It’s a great time to sell a home with these rising prices but that doesn’t mean buyers have it tough either. With interest rates where they are these days and home prices that are still low relative to income levels, it’s a great time to buy as well! We’ve got affordable prices and stringent lending practices that are keeping the market from having another bubble situation arise.

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We feel it’s a great time get in on the action and these are just a few of the things happening in our marketplace today. Contact us today so we can go over your specific neighborhood and discuss your real estate goals. We look forward to helping you realize those goals!

1 comment :

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