Multiple Offers? Bidding Wars? Cash Sales? Oh My!
Surely I refer to the good ole days of 2005, right? Not exactly. Try 2008.
How do I know that we have either reached or are very near the nadir of the Great Phoenix Real Estate slump of 2007-2008? Well, I don't. Unlike the "experts" who like to think they can accurately forecast our market's health, I offer no promises as to the month, week, day and minute that we hit absolute rock bottom. I am but a simple Realtor. I do know one thing. When it does happen, there will be no starter's gun fired into the sky signaling that it is time to BUY NOW! We will only know with certainty that we hit the mythical bottom when looking back from a vantage point of 3-6 months past the mark. That fleeting moment in time will last about as long as a Bob Saget tribute reel before prices begin the slow march back up. Until then, it's all speculation.
Speaking of speculation, I do offer the reappearance of the investor to the local Real Estate scene as anecdotal evidence that we may be finally nearing the elusive bottom. While many still see only the inky darkness of the abyss, others have firmly planted their feet where they believe the ocean floor to be.
Investors are back in a big way in the Phoenix Real Estate market.
Bank REO properties are getting gobbled up at an amazing rate. In the most price driven market this agent has ever seen, the cheap properties are selling at a startling clip. This is not just happening in the historically sought after communities, but in the far reaches of the Valley as well. The dinner bell is ringing, and the professional investors are heeding the call.
Ah, the scavengers! Loathe them or love them, the Real Estate investor can help stabilize a market by establishing the basement. When the bottom feeders (affectionately dubbed in this instance) start snapping up the delicacies that fall to their depths, it's a signal that the tide may be set to turn. Not only does it display confidence that values are at a perceived low point from a group of buyers that purchases for the sole purpose of making money, but it helps to cut through the ample inventory that has plagued our market. With sales increasing with each passing month this year, builders pulling very few permits as they sell their existing inventory and investors now fighting tooth and nail over low-priced homes, I like our chances of turning the corner sooner rather than later.
Like it or not, the banks are setting the market. Foreclosure properties are what is selling right now. As long as investors keep gobbling up this segment of the market, it will bring the regular Mom and Pop buyers back to the regular Mom and Pop sellers. They just can't compete with the deep pocketed investors (who often pay cash) for the distressed properties, and often don't have the means to invest in the required fix up costs. Shoot, we still have one of the fastest growing populations in the country. There is no shortage of demand. With signs of life permeating the market, a nice big dose of consumer confidence may be just what the doctor ordered. Needing livable housing, and unable to swim with the sharks, these buyers will turn to you, Mr. and Mrs. Seller.
Fear not, better days are near.
And they will begin on August 17th, 2008 at 5:24 PM.
Damn, couldn't resist.
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