The Spring Home Buying Season Is In Full Swing
Spring break, spring training and fantastic weather all contribute to the beginning of the Valley’s annual real estate buying season. Our market typically starts to pick up in February and remains strong through July when it begins to taper off again. The Super Bowl kicked us into gear a few weeks early and resulted in the strongest two weeks for housing demand in many years. We are seeing this market demand throughout the East Valley with shortened list to sale times in several sectors.
What about the overall health of the market?
Right now, I would describe the market as safe and solid. There aren’t great deals or great discounts. Because home values have increased and many homeowners have been able to refinance, there isn’t that sense of desperation that there once was in the market. According to Michael Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business, “We’re remarkable stable. It’s almost unheard of for Phoenix to be that stable.” Both supply and demand are at about 84 percent of normal, but Orr anticipates that we will see a steady but slow increase in both through 2015. While he says there is no telling whether supply or demand will grow faster, the market stability is good news, “There’s no reason to be worried about the housing market.”
What does that mean for pricing?
Are you looking to get a steal on a home? Then Phoenix is probably not your market. Metro Phoenix foreclosures have returned to the lowest monthly level since December 2006, which was right before the housing market collapsed. Institutional investors have also largely left the market. In other words, if you are a buyer, don’t expect to offer 10% under list price and be successful with your bid. In the under $200,000 price range, which is very hot, you may even find yourself in a bidding war.
What is hot and what is not?
The hottest price ranges right now are between $175,000 and $400,000. Condos and townhomes represent the hottest type of property in the Valley appealing to both Baby Boomers looking to downsize and first time homebuyers looking for low maintenance living. I am also still seeing that turnkey/remodeled homes are selling the fastest. Unless buyers are getting an incredible deal, they have little interest in a remodel simply because they usually don’t have the cash or time to do the work. Homes that need kitchen and bath updating take much longer to sell and are often sold at a discount.
What about Mesa?
At the end of last year we were all a little worried when it seemed like the Apple may leave Mesa, however, thankfully, the city and the state worked to keep them in the Valley. Mayor John Giles also seems to be on track to continue the development and growth that was launched during Scott Smith’s successful time as mayor. Mayor Giles noted in his inaugural State of the City address “It is my job to increase the prosperity of our community. One way to do that is to attract more jobs, not only jobs but careers. To do that, we need to pave the way for new businesses and expansions. These companies are looking for easy access to freeways, airports and a strong public infrastructure that make the decision to locate in Mesa easy. ”
After years of market angst, followed by relief, it is nice to see market experts, buyers, and sellers optimistic again about Valley real estate. It is a great time to move and get into your first home or to transition into your next home.
John Karadsheh is the Designated Broker for KOR Properties. He has been Multi-Million Dollar producing agent for over 12 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS). In 2014, John was voted the #1 Real Estate Agent in Arizona by Ranking Arizona. You can reach John at 480-568-8684 or visit his website at www.KORproperties.com
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