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More good news: Maricopa real estate market heating up

By
Real Estate Agent with Flex Realty

Last week I posted about the Southern California real estate market and how it was rebounding, see: Great news for Arizona! So Cal prices didn't drop in Feb, and now we have good news from our southern neighbors in the Phoenix area.   Our home sellers in Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt rely on the real estate market to the south of us as well.  Many buyers from Scottsdale, Peoria, Glendale, and other valley cities acquire second homes and investment properties in our area.  Good news down south, means good news for the Prescott area as well.

Mike Cromford, in his Arizona Real Estate Market Report, on March 22nd said: 

There is no doubt that we are experiencing a boom in buying across all the areas where pricing is very low. This increase is having little effect on properties above $150,000 but below that mark, and especially below $100,000, I'm tempted to call it a feeding frenzy. The effect is also largely confined to single family detached homes, with condos experiencing relatively weak buying interest.

Listing success rate across all areas and types is now over 50% - we haven't seen that since June 2006.

Pending listings approach 11,000, a level last seen in August 2005.

Active listings are at 50,561, their lowest point since April 2007. However that total includes 1,928 active listings with contingent offers, up from 883 at the start of the year. So the increased demand is eating away at the over-supply quite nicely.

The statistics tell one aspect of the story, but personal experience reinforces it. I have made offers on several inexpensive properties in the last few weeks, for myself and on behalf of clients. In every single case there were multiple offers. In one short sale case there were as many as fourteen offers on the table at the bank before I even made an offer. In fact I have so far not managed to be the highest bidder for any of the properties. Luckily the highest bidder dropped out of one deal for lack of financing, and I was in second position, so I did come away with one signed contract. Not one of the properties has so far sold for less than the asking price, and one went for at least 50% higher.

It feels like a seller's market in these low-priced locations, because of the spirited competition from other buyers. But luckily for the buyers, the sellers (the banks) don't seem to have quite noticed yet, and they are still keeping prices low. Could it be the psychological pressure of the additional pending foreclosures looming over them? They may be wondering how long this buying frenzy can last. It's a good question. But right now there is not the slightest sign of it faltering.   See the original post.

If you are waiting for Godot and the "right time to buy," then you should consider NOW.

Posted by

Patrick Schutte
REALTOR

Comments (1)

Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales

The problem with those ACRs is that all the houses behind them have to sell, too. Hopefully, they are in better markets!

Mar 24, 2009 03:05 PM