As you must be now aware from my multiple posts, the lower end of the real estate market is on fire and prices are starting to increase. It is becoming increasingly difficult to evaluate what prices will buy a specific property that you like as a buyer because it impossible to use closed sales as comparables because they usually went to contract 1+ month earlier and prices are changing quicker than that. It makes it very difficult to evaluate pricing. The problem is, banks are getting smart and pricing homes in those ‘hot’ areas at or slightly below market value soliciting massive amount of interest and multiple offers within days - sometimes within hours!
There is no point in using the list price as a gauge on what to offer. You must go on closed and pending sales to evaluate a reasonable offer price. In many cases now, you will need to offer well over list price to even have a shot of the bank accepting your offer. That’s how crazy it has become. As a buyer, you need to wrap your head around this new reality prior to arranging a trip to town to shop for a home because if you are not prepared to face the present market reality, you will find yourself leaving empty handed, disappointed and dis-empowered.
If you’re looking to buy a home in one of these areas like the SW or SE Valley, you need to be prepared to offer more than list price and have a professional Realtor to lean on to assist in evaluating values. It’s turning into a crap-shoot out there and having someone who understands the current market dynamics and how to navigate through the present market conditions increases your chances of coming out happy.
So what’s the good news in all this, you might ask? It appears as if we have hit market bottom in certain areas and price ranges across the Valley. Yes, prices in some areas are starting to creep up, but if prices have fallen 50-60+% in those areas and they have inched up 5%, you are still close enough to market bottom to see the potential upside that will come in the future. There is no more guessing games at the lower price point. We have hit bottom. Get in now while the Cdn$ is strong and before all this pent up demand push up property values much further. We are in the heaviest buying season of the year in Phoenix - Summer-Fall. this is when homeowners transition to new homes before school gets underway and the snowbirds come to buy before next winter’s season so they can get set for their winter vacations.
Keep up to date by reading my blog and market updates at: www.CanadiansBuyArizona.com