Residential real estate in Arizona

By
Real Estate Agent with Equitable Real Estate
It is true that residential real estate in Arizona is down. The number of sales and the total volume of dollars spent are both down. Nationally, we are doing much better than most. Homes that are priced right and in pristine condition are selling. They are taking a bit longer but they are selling.Pricing, condition of the home and location are the key ingredients. You can't do anything about location so the emphasis should be on the two other components. I will be writing more about the Arizona real estate market in the near future. Your feedback is welcome.

Comments (1)

Bob Stahl
Sterling Fine Properties - Phoenix, AZ

Phoenix is one of the 10 best places for real estate deals, according to Forbes.com.  In an article last week, Matt Woolsey wrote, “there are areas of the county where it makes sense for some to buy. That's because, in a market slump, sellers eager to unload their homes often accept less money from buyers. New construction also slows. Both bode well for buyers hoping to score a deal – if the market in which they are buying is expected to experience increased sales.”

The median home sales price in Phoenix right now is $264,800 – that’s down 2.7% from last year.  But this year’s lower prices will spur an increase in home purchases in the Phoenix area, helping the housing market here to recover.  Home sales are expected to pick up next year, with a turnover rate of 4.32%. 

Phoenix makes the “10 best places for real estate deals” list in part because there are still a lot of people moving here every year.  Not only does Arizona have the sunshine and golf courses that entice many, but the state also ranks among the top 5 for job growth.  That means there will be a demand for housing over the long-term; so an investment here is likely to pay off in the long run.  (Cities like Detroit, for example, are in a different boat; with people and jobs moving out rapidly, you have to wonder about demand for housing there over the long term.)

But many buyers in the Phoenix area – and in other boom markets – are hesitant, wondering if now’s the time to buy or if prices will drop even more.  Last year, Columnist M. Anthony Carr wrote in Realty Times that buyers shouldn’t hesitate too long before getting in on a good opportunity.  “For buyers who are too skittish about the market, they will miss a financial boosting opportunity. In markets where it has normalized (D.C., Miami, Chicago, Phoenix) buyers who buy based on rock-hard solid economic evidence, will be excited in a few years that they bought a house low and now stand to earn a handsome profit a few years later.”

In an article earlier this year in the online magazine Knowledge@W. P. Carey, Larry Seay, chief financial officer of Phoenix-based Meritage Corp. said that there are currently about 45,000 homes on the market in the Phoenix Metro area (compared to about 25,000 typically).  That is too many, Seay said, but “consider that you have 65,000 homes being built every year in Phoenix and 128,600 people moved into the metro area last year. That extra 25,000 will burn off.  Phoenix has gotten a lot of bad press about the overhang, but Phoenix is a strong market.”

There it is: rock-hard solid economic evidence that there is strong long-term demand for housing in Phoenix and that the market will equalize, with housing prices rising in the coming years.  So for buyers looking for a deal, heed Forbes’ advice and take a look at Phoenix.

The early bird catches the worm, as they say.

Visit www.MyPhoenixMLSBlog.com for more 

Oct 23, 2007 05:39 PM