How’s the market?
In our local economy, here in the Phoenix area, the question “how’s the market” is an important topic for many, regardless if they own a home or not. In the past few years we have heard a lot of doom and gloom about the housing market and we all know at least one person who has been impacted by a short sale or a foreclosure. Today, the landscape has begun to change – and this is good news for Arizonians.
Right now, in Maricopa County there are currently more homes “sale pending” than there are available for sale. Our active inventory of homes on the market has dropped below 12,000 units whereas the pending home sales are close to 19,000 units (out of those homes sale pending 7, 072 are pending short sale approval from the mortgage company).
According to an article I read from AZCentral.com, “Home resales, averaging 7,500 a month, are at their highest level since the peak of 2005-06. But the number of homes for sale is at the lowest level in more than a decade.” The current inventory is one-third compared to what it was in 2009. As a result of the low inventory, we are seeing multiple offers on homes which end up selling above asking price within only a few days on the market.
"Phoenix's housing market is in a state of fast changes," said Mike Orr, real-estate analyst for Arizona State University's W.P. Carey School of Business. "Prices are ticking up, and buyers are getting more and more frustrated they can't find homes," said Orr, who also publishes daily real-estate analysis called the Cromford Report.
“Metro Phoenix's median existing-home price has been steadily ticking up since last August when it fell to a 12-year low of $113,000. In February, the median price for the region was up to almost $123,000, according to a monthly analysis from AZBidder. All types of homebuyers see metro Phoenix's prices finally rising and want to close a deal before they go higher.”
If you or someone you know is considering a home purchase, now is a good time to get in the game. A purchaser who plans to live in a home as their primary residence has the advantage in this market. REO Homes, such as HUD, Fannie Mae or Freddie Mac have a “first look” program which does not allow investors to make offers on these properties during the first fifteen to thirty days on the market. This allows the home buyer a chance at securing the property without the fear of losing to a cash investor.
As a homeowner who is thinking of selling in this market, you might have previously thought it wasn’t an option however, with prices increasing you might be surprised at what you can sell for now than you could a year ago. Additionally, the short sale approval process has dramatically improved in the last six months. We are seeing more and more sellers who are upside down on their mortgage get an opportunity to start fresh with a short sale transaction.
As a full-time REALTOR, I have the experience you need to navigate through the changes happening in our housing market. If you think buying or selling a home has been out of reach for you, then ask me, “how is the market?” and I will tell you it’s a great time to buy or sell!
Luisa Ramirez, RE/MAX Professionals