5 things you should know about the current condition of Phoenix Arizona Real estate market

By
Real Estate Agent with Keller Williams Realty East Valley

Opportunity abounds for those who seek, and have an open mind on how to create. Many people are realizing that their dream of home ownership is very realistic these days with the affordability. There are several dynamics to this market today, and if you are aligned with the proper professional, you can position yourself to profit in a big way.

1. Low Pricing + low interest rates = affordability!

Its no secret that the market here in Arizona and nationwide has had a rough downturn over the last few years, and the question is has it bottomed yet? There are several things that I look at when forming my own opinion of ‘Has the market bottomed yet?’ First off, every real estate is local, even to the smallest subdivision. When we hear the media saying that the market is going to take a ‘double dip’ and ‘we could see another 20-30% dip in pricing’ they are making generalize national statements. One thing that we know is that Arizona real estate has been hit very hard by the housing bubble, and because of that the values have done most of their depreciating by now. Another factor that has a large number of buyers motivated is interest rates. With the vast majority of real estate buyers needing to get a mortgage, the interest rates play heavily into the laws of supply and demand, and affordability. With monthly payment affordability, buyers have more financial resources available to them and with the market at 1998 pricing you can purchase more house for the price. Its a incredible time for homebuyers and investors! I’m excited !

2. Foreclosure inventory creates opportunities to buy equity

In Phoenix metro area today, about 52% of the properties available for sale are either pre foreclosure, short sale or bank owned (as of 8/31/11). More times than not, these sales which we call distressed sales, are in need of some type of clean up or repairs. The more repair work that is needed the longer the property usually sits on the market. Due to this fact, there are properties out there that the banks are willing to sell much lower to offset for the repair work needed, thus giving buyers a lot of equity to work with. If you are an investor or just handy repairing things around the house, you have the opportunity to purchase a home for 60-70% off retail appraisal value. This will allow you to position yourself to profit from todays market.

3. Investor friendly (flip and hold strategies)

We have all heard the phrase ‘now is the time!’ and it certainly is. Investors have an unprecedented opportunity to create wealth with investment property these days. Wether it’s a multi-family property or a single family residence, there are many cash-flowing deals I see on a frequent basis. While the competition has been heating up with a lot of foreign capital and institutional money coming into the market certain sources such as the trustee sale auctions are no longer as lucrative as they once were. Other options such as short sales and Lender owned properties are now more attractive to investors. Whatever your real estate investment goals are, be sure to assemble a good team of people that will assist you in profitable, successful investing.

4. Competitive environment ( tons of buyers! )

With all of the investors and first time home buyers we are starting to see properties that have several offers within the first few days on market. Many of those offers are cash offers from investment groups; this is reminiscent of the real estate boom with all of the offers. in order to be sure that you have the best chance of getting your offer accepted on these properties you need to make sure that you are working with a competent mortgage lender & Real estate professional.

5. Things aren’t going to stay this way forever

The window of opportunity is open for now, but with new financing options are beginning to become available, buyers and investors all taking notice of the situation, this market can’t stay this good for buying for ever. It is a great time to position yourself to own your own home for fractions of what it would have cost 5 years ago. Our pricing levels are about the same as 1998!!!

Summary: To sum things up, I am very excited about the opportunity to put people in the home of their dreams, and help with real estate investment opportunities. If we have ever seen a time to buy, its today ! Be sure to align yourself with a good Realtor, home inspector (licensed & bonded), title and escrow company, and mortgage lender. This team of competent professionals will help you to make a smart buying decision for the large investment of buying a personal home and/or investment property.

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