Somtimes it can be hard to know where you are going if you don't know where you have been.  I hope this saying applies to the Phoenix Real Estate Market.  Many folks are claiming these days that prices in our market are "low".  What does this mean?  What are they low in comparison to?  Can they go lower?  Will we see price appreciation in the near future?

Lets first take a look at a very relevant data set - the Median Resale Price for properties in the Phoenix Metropolitan Area since the beginning of 2001.  The data is courtesy of ARMLS and deemed reliable but not guaranteed.  Quite the hump in this data in the 2004-2007 timeframe.  Obviously (hindsight certainly is 20/20).  But where are we TODAY?  The median resale price has been holding steady, if not going up marginally, the past few months of 2009.  Notice that we are in a place very similar to the price regime of early 2001.

Do I know if we will see extensive price appreciation in the near future?  I do not - and I do not expect it.
Do I know if we will see further 20-25% drops in price?  I do not - and I do not expecct it.

Personally, I think we are, +/-, at the bottom, and will stay there for some time.  Prices are so low (especially in the <200k price segment) that it is unlikely there will be substantial drops.  Then again, the economy is so weak, it would seem difficult for more and more buyers to jump in than are already in the market.  What does this mean?  An extended buying opportunity for those with the right credit/cash situation - these folks should be rewarded handsomly when the economy picks up over time.

Mind you, I don't have a crystal ball and these are just my guesses.  If I could predict the future, I'd be quite a bit wealthier :)

Thanks for reading,

Kaushik Sirkar
Chandler AZ Real Estate
ksirkar@hotmail.com
http://www.homesphx.com
480-600-2808 (direct)
480-993-0914 (fax)

I just recently started blogging again.  Two posts ago, I defined Absorption Rate and pointed out how the Absorption Rate for homes in the Phoenix metropolitan area had been trending down.  I must also point out that I originally (some 2 years ago) got the idea to post Absorption Rate statistics from a colleague - Jonathan Dalton.  Well guess what - and this isn't an April Fool's joke.  The Phoenix Real Estate market may now actually be "balanced" with balanced defined as an Absorption Rate between 5 and 6 months with regards to a supply of single family detached homes (Valleywide we are now at about 5.5 months supply).  Many towns in the metro area are actually now seller's markets while some areas, primarily older areas closer in remain buyer's markets (less foreclosures due to more owners having been there for long periods of time?).  See the latest data below (per ARMLS, deemed reliable but not guaranteed.

To continue reading, please go to my website for all the statistics!

Funny how pursuing an MBA keeps one from blogging on a regular basis.  But thats exactly what happened to me.  Well, with just about 2 months left in my program, I'm back.  Just started blogging recently at my website (www.homesphx.com) and I plan on attempting to contribute to active rain again again.

Hellooooooooo Rainers!!!!

Gorgeous Barrington Estates
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Looking for an oversized two story home?  An amazing single-story executive home?  One place to consider - Barrington Estates in south Chandler!

This subdivision is conveniently located near both the 202, 101 and Chandler Mall yet offers a very peaceful and relaxed setting.  Prices can range from the mid 400's to past $700,000 for these lovely homes.  See below for some recent statistics.

Do you want to live in a Nicholas Homes subdivision lined with greenbelts and amazing properties?  Barrington Estates is calling.....

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Foreclosures in the Valley up 97% in December!
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

See the article from today's Arizona Republic.  Wow, foreclosures up 97% from the same time period the previous year!  Guess this is a strong indicator of the problems the Valley is currently facing.  Slightly weaker jobs, burdensome debt load and the aftereffects of the subprime fallout are all certainly contributing factors.  We will most certainly continue to watch inventory; both locally and valleywide, as the best indicator of the state of our market.

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Need a little help with that home purchase?
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Prices for homes in the Valley are significantly higher than they were 3+ years ago.  This obviously makes it difficult for some people without extravagant incomes or first time buyers to get into a home of their choosing.  Well there is help for some people out there.  For those willing to purchase in a predefined area, primarily bounded by Chandler Blvd, the eastern city limits, Camelback Rd and 83rd Ave, there is a program in place to help with closing costs, down payments and interest rates for low-income purchasers.  Please see the article in today's Arizona Republic for additional details.  Please contact me with any questions.

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

The Phoenix Real Estate Market - this builder thinks its gonna go up!
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

With the current housing slump in the Valley (and in many parts of the country as well) one would expect a lot of "cutting back" by builders and others in the industry.  We're certainly seeing that overall with all the mortgage company layoffs, the subprime crisis, etc.  But in the long run many agree that the Valley still represents a very promising market for Real Estate and specifically for builders.

In today's Arizona Republic, we see an article where John Laing Homes of California is expanding its operations in the Valley by targetting a development in Goodyear.  They discuss how Goodyear is one of the fastest growing areas in the country and they want to be a part of that future...as well as other subdivisions in the Valley!

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Real Estate Reality Show - Phoenix Style!
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

There are ALL SORTS of tv shows related to Real Estate.  Flip this house.  Bob Vila that.  Million Dollar listing.  I could go on and on.  Are you familiar with what's going on in the Valley?

• Houses just got too expensive for people?
• People bought too many investment properties that have turned on them?
• People bought unnecessary square footage in the form of McMansions?

Do all these themes interest you?  According to the Arizona Republic there may soon be a TV show based on such scenarios that folks have undergone in the Valley.  The main story discussed in this article...wealthy retired family, helping children who need it, multiple mortgages, real estate downturn.

You do the math.  I for one, look forward to the show!

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Latest Valleywide Statistics
by Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate

Please find enclosed the listings/sales statistics for the entire Phoenix Valley.  Finally, for a one week period at least, inventory didn't go up.  Thanks to our friends at Grand Canyon Title for the graph!

Thanks for Reading :)

Kaushik Sirkar, Chandler AZ REALTOR
Chandler Arizona Real Estate