Here is a recent article I wrote for one of our news letter’s. I hope you find it interesting! We are located in the South East Valley of Arizona:
“Recently I was in a meeting with several long-time industry pros to discuss current market trends. With approximately 46,000 active listings (up from 30,000 just a few months ago), there is a greater need than ever for seller’s homes to be correctly priced and in tip-top showing condition. Builders are offering some amazing deals to move their inventory. (good time to buy a new home?) To attract buyers, many of the new home builders are offering huge incentives. I have seen in excess of $70,000 in builder incentives! Rather than reduce prices by a ton (and thereby potentially decreasing the value of the area), builders are trying to make it easier and more appealing to buy a new home as opposed to a resale property. Sellers are facing stiff competition from these deep-pocketed builders.
Of course with gas prices and housing inventories both up, many people are looking for more centrally located homes. You will find that certain parts of the Valley are doing much better than others.
And while it is certainly true that many people have been priced out of the market, the need for housing never goes away. This is illustrated by the strengthening rental market. Rents are up and landlords can be more picky about tenants.
Another thing to watch is the foreclosure rate. Many bought at the top of the market and were talked into bad loans. This may be a problem if they were relying on unrealistic appreciation to help.
As always, I will be watching the market closely, so if you have any questions, “Just Call Nick!”