By Diane Olson of the Diane Olson Team
Potential home buyers scanning the Phoenix area for good deals should think about acting quickly. After a recessionary dip, the area’s real estate market is beginning to show signs of improvement. Resales ended 2011 on a strong note, generating a higher median sales price and fewer foreclosures in December, compared with the last month of 2010.
The buyer’s market is starting to dissipate as competing buyers move in. The demand for homes is strong, and the inventory is shrinking. At the peak of the market, in 2009, MLS listed more than 50,000 homes in the Phoenix area. Since then, multiple listings have dipped to fewer than 18,000 homes, and bidding wars are once again becoming more commonplace.
Another telling development: New home builders are able to demand higher home prices, and they’re paring back some once-reliable incentives, which we haven’t seen here in years.
What used to be “negotiable” when purchasing Phoenix real estate is not as negotiable. The lower priced inventory is selling close-to or at list price if not over list price. If you are serious about buying a house in Phoenix, “low-ball” offers are not happening now-a-days so you must be realistic on your offerings. Plus, the Phoenix Metro comparative sold property prices have not caught up to the current market closing prices. So remember, with less than average multiple listings available, you have to be more aggressive in the Phoenix real estate market if you want to own a piece of the Arizona sun!
When searching the MLS, don’t just search by price but also by location. There are several areas to consider. Make sure you do your due diligence and with the internet you can learn a lot about an area, including but not limited to crime and school districts.
You can get in on the action, too. But don’t delay or you risk being left out at a most opportune time. To learn more about “owning a piece of the Arizona sun,” please contact Diane Olson, 480-794-1106 or www.dianeolson.ca.
Diane Olson is a former Canadian police officer whose team of agents has earned its reputation as Canada’s go-to realtor for Canadians looking to buy vacation and investment property in Arizona.