Local real estate experts are predicting the housing market in Arizona has finally reached the end of the crash. Further predictions indicate home buyers would be in for a shock when they decide to get off the fence and start looking for a home. “The prediction may seem outlandish given how gloomy real estate news has been for years,” said Mike Orr, director of the Arizona State University Center for Real Estate Theory and Practice.
“But a growing demand and shrinking supply has driven home prices up in recent months,” he said. Orr thinks that’s gone unnoticed to people who will enter the market this spring, in what is typically the peak time for sales activity.
“They’re going to be surprised that it’s so hard to buy a house. They’ve been hearing for so long that there’s a glut of homes,” Orr said. “They’ll go out and find there’s not a lot to choose from and every time they bid, there’ll be three or four other offers.”
Presently in Arizona’s Regional Multiple Listing Service, there are 14,894 active homes for sale – in a normal market our available home supply should be around 33,000 to 35,000 homes. In addition to the low inventory, there are also 16,478 homes which are under contract or “sale pending.” When a new listing comes on the market, it is receiving on average three offers – or in some cases more – and the multiple offers are resulting in above-list price sales.
“This year’s real estate market should be the best in five years,” Orr said. It will take several years to resemble a normal market and any increases will be far short of what created the bubble,” he said. “I don’t think there will be the same speculation there was, but there might be a lot of people who do want to buy a house in the next two years, thinking, ‘If I don’t buy now, I might miss out,” Orr said.
The housing market did see signs of positive recovery in 2011 as median sales prices had an increase of 6.5 percent and the average sales prices were up by 3.5 percent. If you or someone you know has been waiting for the market to hit bottom, then I would like to suggest that perhaps the time is now. I have been selling real estate for over 15 years in the Valley and I have never seen anything like what we are experiencing now. Don’t wait to take advantage of the low-low pricing and the fantastic interest rates – call me today and let’s get started!
Source: East Valley Tribune