The Phoenix East Valley Real Estate Roller Coaster

Not many areas of the country have seen the height and subsequent down fall that can match the most aggressive roller coaster out there. The Phoenix East Valley is made up of five major cities Mesa, Scottsdale, Chandler, Tempe and Gilbert and several smaller towns like Queen Creek, Apache Junction, Gold Canyon and San Tan Valley.

Sales volume and price volatility have both been on a significant ride since 2004. To start with volume of units sold began an upward spike over 4000 units in mid-year. Price began a strong upward climb and number of sales through the end of 2005. Then the fall in sales began with prices at all-time highs. By mid-2006 prices began to slip as did number of sales and home sales volume continued steadily down through 2007 when prices were swiftly moving downward as well.

The scar of continued price declines kept sales volume down through 2008. Sales started a slow upward move in 2009 as investors felt that real estate had reached low sufficient to warrant risk. Sales volume continued up through 2012 as prices continued to decline.

(Statistics from Cromford Reports)

Between September and October of 2011 the East Valley real estate market started to see a new trend. Prices began a slow rise through quarter four of 2011.

Then as we entered 2012 prices began to accelerate upwards adding as much as 25% to the median sales price in many areas. Sales volume remained steady and only restricted by lack of inventory. With inventory at five year lows, many buyers are struggling to locate homes to buy.

(Statistics from Cromford Reports)

Even the most astute real estate investors are unsure of where we are headed next. Concerns about the elections, are adding to the uncertainty. A continuation of current policy around the housing market that we have seen the last four years is likely to stall and maybe cause a small downward ride on the East Valley real estate roller coaster. FNMA and other lenders intend on starting the foreclosure mills again in quarters one or two of 2013. Additional quantitative easing and tight federal lending guidelines are keeping many buyers on the sideline.

The unknown is what a presidential change may mean locally. Many experts believe a change in direction can only be good for homeownership and prices but that is all speculation.

What we do know is where we have come from. Here in the East Valley it has been a roller coaster ride that looks like it may soon be over. For a look at the National Report on Realestate.com Click Here