Signs of Market ImprovementÂ
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. â€œThe prediction may seem outlandish given how gloomy real estate
news has been for years,â€ said Mike Orr, director of the Arizona State
University Center for Real Estate Theory and Practice.
â€œBut a growing demand and shrinking supply has
driven home prices up in recent months,â€ he said. Orr thinks thatâ€™s gone
unnoticed to people who will enter the market this spring, in what is typically
the peak time for sales activity.
â€œTheyâ€™re going to be surprised that itâ€™s so hard
to buy a house. Theyâ€™ve been hearing for so long that thereâ€™s a glut of homes,â€
Orr said. â€œTheyâ€™ll go out and find thereâ€™s not a lot to choose from and every
time they bid, thereâ€™ll be three or four other offers.â€
Arizonaâ€™s Regional Multiple Listing Service, there are 14,894 active homes for
sale â€“ 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 â€œsale pending.â€ When a new listing comes on the
market, it is receiving on average three offers â€“ or in some cases more â€“ and
the multiple offers are resulting in above-list price sales.
â€œThis yearâ€™s real estate market should be the
best in five years,â€ Orr said. It will take several years to resemble a normal
market and any increases will be far short of what created the bubble,â€ he
said. â€œI donâ€™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, â€˜If I donâ€™t buy now, I might miss out,â€ 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.
Donâ€™t wait to take advantage of the low-low pricing and the fantastic interest
rates â€“ call me today and letâ€™s get started!
Source: East Valley Tribune