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Real Estate Boom, Fog and Rainbows

First off, what a ride! 2004 and 2005 were unlike any years I've ever seen before in the Phoenix Metro real estate market. Thank goodness it has slowed... but wait, before you get too upset with me - hear me out.

Fountain Hills Arizona
Real Estate Boom
While the boom was great, it had a lot of down sides like the "Growing Pains" that not a lot of people saw while it was happening. I for one quickly realized that my team would not possibly be able to handle each and every person that came to us. Well, at least not with the same care and diligence that we've always used. So, we had to make the choice to cut down big time on our new client load. It may sound crazy to you now since the market in most places has slowed dramatically. But, it was the only way to maintain our integrity at the Phoenix Homes Team and make sure each of our clients got 100% of our attention when we were with them.

Additionally, the run up in home prices across the nation meant that many would not be able to afford a home soon if it were to keep going the way it was.

Let me tell you, I do not miss those days...

Pinnacle Peak, Arizona
Real Estate Fog
Now it seems, many consumers and agents alike are in a sort of real estate fog. Simply waiting on the side lines for "the fog to clear". Consumer confidence drives our economy folks... nothing is going to happen until we do something ourselves. Waiting for the local news stations and news papers to write some positive news about the real estate market just isn't a viable plan.

We as agents need to take the time to educate the general public. Did you know that every source I've read says that 2007 will most likely go down in history in the top 5 best years of real estate sales?

We as consumers (yes I have bought, and do live, in a house) need to realize that real estate as a long term investment almost always does well. So why not buy now while some sellers are still in the "buyer's market" mode. Why wait for that to turn around, only to buy in a seller's market. Seems foolish when it is written, yet that is what many consumers are doing.

North Scottsdale, Arizona
McDowell Mountain Ranch
Real Estate Rainbows
Luckily I live, work and play in the Greater Phoenix area and people move in more than they move out. That being said, I am very bullish on our market. It continues to amaze me how many people are actually moving here, and it's not just people but major employers too! With our outstanding weather, great lifestyle, good job market and affordable housing, I see Central Arizona growing for many years to come.

I don't want to hear anyone saying that they wished they would've bought back when it was a buyer's market (these things don't last forever). Because... I told you so.

Posted in the Ramblings From Phoenix blog.

Posted by Matthew Pellerin - Phoenix Homes Team on 08/26/2007 06:06 PM

Comments (10)

10 Comments on Real Estate Boom, Fog and Rainbows

All we can do is strive to educate our clients about the state of the market and real estate's historical performance. It is up to them to take that information and decide if they are interested in a transaction! PS nice fog pic!

08/26/2007 06:54 PM

by Kaushik Sirkar (Call Realty, Inc.)

Amen Kaushik! But, I get a little tired of hearing that we are in a slow market when all stats point to 07 as being one of the 5 best years of sales in history to date.

Thanks for the comment on the photo. I take pictures all the time, never quite knowing when I'll need to use one. The double rainbow was actually sent in to me from a past client a few years ago and is published on my Phoenix site.

08/26/2007 06:57 PM

by Matthew Pellerin - Phoenix Homes Team (Realty Executives - PhoenixHomes.com)

This is a great post. I realized a long time ago that perception is reality - unfortunately, in a lot of markets, the perception (media-driven) is that the real estate market is hurting. Austin is doing well and this will be another good year for us, but we are hindered by some of our buyers being unable to sell homes elsewhere. I am expecting a big boom over the next 6-12 months.

08/26/2007 07:36 PM

by Jason Crouch, Broker - Austin Texas Real Estate (Austin Texas Homes, LLC)

Great photos as usual Matt. Just like any other market, it has its ups and downs. The sad thing is that no news sells like bad news. Things will adjust out like they always do. -Charles

08/26/2007 08:31 PM

by Jacqulyn Richey - Las Vegas Real Estate (Prudential)

Jason,
Thanks for reading, commenting AND complimenting!

Charles (LVRealty.net),
Photos... you're making me blush. LOL It's only a hobby.
As for the news and media in general, well that's another blog post. Too bad almost all of the national media is owned, operated or controlled by so few.

08/26/2007 08:37 PM

by Matthew Pellerin - Phoenix Homes Team (Realty Executives - PhoenixHomes.com)

Matt great post and it is a topic that I was planning on talking about on my blog. People get into this mode that they follow the leader and that costs them serious money. All of the buyers that we have been working with as of late are amazed at the deals we have been getting for them. We have homes selling for less then they did 3 years ago when a seller must move (relocation, money issues...). That is amazing IMO and the appraisals are coming in higher then the purchase price many times. These buyers stand to make a lot of money on their homes as the market turns back around.

Excluding what someone can make on their home this is an amazing time to purchase because there are so many choices. You can actually go out and find the perfect home and not end up in a bidding war. The last client I found a home for actually fell in love with 2 homes and had to make a list of all the things they liked about each home to pick one. This is a huge difference then when there is very little inventory and you have to settle for a home that is close to what you wanted.

08/27/2007 10:36 AM

by Ken Smith (Suburban House Hunters)

Great post. I like the rainbows!`

08/27/2007 01:59 PM

by Tracy Santrock - Cary NC Real Estate (Fonville Morisey)

Wow Ken, that was a lengthy response... guess you really did have this topic on the brain.

Thanks for adding to the story Ken. Glad to hear that your market is comparable to our market in that we no longer have to bid against 10+ other offers first day on the market for resale homes. Now, we have choices for our buyer's, and more importantly - DEALS!

Tracy, thanks... of course that's the one photo on this blog that I didn't take. :-)

08/27/2007 02:18 PM

by Matthew Pellerin - Phoenix Homes Team (Realty Executives - PhoenixHomes.com)

"Did you know that every source I've read says that 2007 will most likely go down in history in the top 5 best years of real estate sales?"

In this area I read it might end up being the fourth. Funny how there is so much negative press and yet the year 2007 will still hold a record high.

09/24/2007 07:02 AM

by Roxanne Ardary (Long and Foster Real Estate Inc)

The Press is amazing heh? All stats point to good, all news points to bad...

09/24/2007 02:54 PM

by Matthew Pellerin - Phoenix Homes Team (Realty Executives - PhoenixHomes.com)

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