Record Home Inventories in Arizona....
by Kaushik Sirkar, Chandler REALTOR®
Chandler AZ Real Estate
For those who are/were unaware, the inventory of homes for sale in Arizona really began to spike up around late spring of 06', suddenly shooting up to more than 40,000 homes for sale. We have remained well above 40k in inventory even during the winter months where there were fewer new listings and various other listings were taken off the market. Fast forward a few months - we've hit a new record. There are over 50,000 homes for sale in Arizona. To give you an idea of how strong a Buyer's Market this supposedly is, a 'normal' market has about half that level of inventory. During the boom of late 04' through ~ 9/06, inventory dipped down to a few thousand.
Read this article from today's Arizona Republic. There are various reasons for these record inventories which I'll highlight below.
- Unrealistic Sellers - Folks want to list their homes for MORE than what the neighbors got - over a year ago! Sellers must understand that the market dynamics have changed greatly and adjust their expectations accordingly!
- Investors want profits - There is no doubt that a huge factor driving the recent boom in AZ (for that matter, national) Real Estate was investor based speculation. Many of these investos would like to see their profits and are putting their homes up for sale.
- Seasonal/Cyclical - Its springtime. This is the time of year folks traditionally put their homes on the market.
Combine these three items - unreasonable expectations, investors flooding the market and seasonal adjustments - and one begins to understand why we have soooooo much inventory.
Are you a seller in this market? Do you absolutely NEED to sell? Well you must price your home AGGRESSIVELY. Just want to see what your home might fetch? Wrong market to go fishing..... For the buyers out there, you have never had this much selection before in the AZ Real Estate market. You can really choose the perfect home for you.....
Thanks for Reading :)
Kaushik Sirkar, Chandler Realtor®
http://www.homesphx.com
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