In My Neighborhood in 85255>Question Details

Jen Hyduk, Home Owner in Oxnard, CA

What the heck is going on?! Home prices are suddenly way up and all the houses are getting snatched up in a day! Very strange...

Asked by Jen Hyduk, Oxnard, CA Tue Jun 18, 2013

McDowell Mountain Ranch

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Answers

35
The low inventory as lead to bidding wars in many areas and price points. To make matters worse, the recent increase in interest rates has brought more buyers "off the fence" and into the market.

You need to work with a REALTOR that is an effective advocate for your offer. I have had a high percentage of my offers accepted. Many agent make twenty or thirty offers with the same client without success. I sell my ability to get the deal done. I detail my twenty-plus years of experience in a previous career as a transaction real estate attorney and title attorney to the listing agent. I lay our my buyer's seriousness and ability to withstand the hiccups that occur between loan pre-qualification, opening escrow, and closing on a purchase transaction.

Please do not hesitate to contact me if you have any questions.

Mario Micheli
Nextage Realty Professionals
480-440-0077
LinkedIn Profile: http://www.linkedin.com/in/hiremario
1 vote Thank Flag Link Sun Jul 14, 2013
Good Observation! And welcome to RE 101 - ie: supply/demand. The current market is a great example of what happens in a large market, such as ours, with approx. 1.200,000 homes, when pent up demand comes into play. Remember, at the height of the market in 05/06, Homebuilders were building (and selling mostly) 50,000+ homes per year! In the past 3 years, that has dropped below 10,000. Maybe this year, it will hit 12-15,000. So, with interest rates near or at historic lows, people still moving into the area, there is demand once again. And, for lots of various reasons, many people are not selling. You mention some that come on the market get snatched up right away. Those are usually the ones that have good realtors who have counseled their sellers about pricing their homes right, and, the homes are in good shape, and model-ready for sale. Boom, they get snapped up right away. Sometimes it isn't that easy, but, that's the reason you are seeing prices rising and homes selling quickly.
1 vote Thank Flag Link Tue Jun 18, 2013
How do you mean "snatched up"... it's a buyer's market and I see price reductions on 20% of the MLS listings in Scottsdale and Fountain Hills. The buyers have the upper hand and if you see any "snatching up" it means the situation isn't really understood. Look deeper.
0 votes Thank Flag Link Fri Jan 10, 2014
Right now Maricopa County has a 3 month inventory, which is much higher than it was 3 months ago. With that said, it has definitely gotten easier for buyers to get their offer in and it also gives buyers more negotiating power!! All you need is a good Realtor that knows how to "schmooze" the listing agent and get you the deal you want!

Tyler
602-695-2874
tyler@occasiorealty.com
0 votes Thank Flag Link Wed Sep 18, 2013
Its awesome if you're a seller! Challenging if you're a buyer. With the right agent you'll find your dream home! Hang in there.
0 votes Thank Flag Link Sun Sep 8, 2013
We have the lowes inventory that we'v had in 15 years in our Real Estate Market. In fact we need sellers right now more than ever. Who do you know that would like to take advantage of this marketplace? I would love to help!

Best Regards,

Real Estate Professional / Prestige Realty
Bianca Bennett / 602-570-7898
Bianca@InvestInArizonaHomes.com
Website: http://www.InvestInArizonaHomes.com
0 votes Thank Flag Link Fri Sep 6, 2013
Scottsdale price increases can be very seasonal. May-June, Sept-Oct., Jan-Feb. are all times of increased buyer competition. Add in our current LOW, LOW inventory and this drives prices up further.

When temps rise above 100 degrees, buyers tend not to be out looking for homes and prices level off. This is where we are at the moment. When temps fall below 100 degrees (as in late August to Sept.) we will begin to see more buyers in the market. However, we anticipate low inventory for the foreseeable future. Therefore prices will be on the rise once again.

The hottest price range is in the $250k range. However, even the $800k-over a million has begun to pick up again.

Home builders have been on the sidelines for 5 years. They are now beginning to build again. New developments that get announced (with just a few hundred homes) have 1,000+ buyers lined up to purchase. Yes, it is beginning to happen again. According to Michael Orr of the Cromford Report, we have not had this low of new home inventory since WWII. New home builders will "trickle" out the number of homes they build, so they can control the pricing.

We still have 60k people a year on average coming to the valley for the sun, schools, shopping, and outdoor activities. The demand is still there. Add to this the fact that we are hitting the 3 year timeframe for those that had bankruptcy or foreclosures. So, they are back in the market too.

This all adds up the fact that if a home is in good condition and priced right it can actually sell before the first open house (or even sooner).

There are ways to get buyers prepared for success, however.

If interested, give me a call 480-370-3214 or visit: ScottsdaleScott.com
0 votes Thank Flag Link Fri Aug 23, 2013
The inventory of available homes for sale is way down. As prices rise, everyone is jumping off of the fence and into the market. There is a lot of competition for the best houses in Scottsdale right now.
0 votes Thank Flag Link Sat Aug 17, 2013
You are in a Sellers' Market, in which there are more Buyers looking for homes than homes listed for sale.
0 votes Thank Flag Link Sat Jul 20, 2013
Supply and demand. When an attractive home comes on the market, there is a flurry of buyer interest leading to competitive offers usually willing to pay slightly higher than the previously comparable sold homes. This lleads to appreciation and price increases.

This scenario may appear strange to some people, but this market behavior has happened in the past and will continue to happen into the future when we have imbalances in the market.

Keys to combat this are:

* Work with an experienced REALTOR who knows how to to get your offer accepted
* Be prequalified with your financing so you are ready to offer on the home right away.
* Don't have a contingent sale tied to your offer
* Pay with CASH when possible

If you need buying or selling advice, call me.

James Wehner
West USA Realty
480-323-5462
0 votes Thank Flag Link Sat Jul 20, 2013
The inventory of homes for sale is very low making the homes that are for sale sell quickly and for better prices. It is basic supply and demand. As more and more homes come out from being under water and builders can build new homes hopefully this will ease up a bit and give us a more balanced market. It is a great time to sell your home while inventory is low. Call me if you want to sell your home for the best possible price.
0 votes Thank Flag Link Sat Jul 13, 2013
Banks are playing the same game with Real Estate as Debeers plays with the diamond trade. There are plenty of properties, but they are being kept as sitting assets so as keep demand high.
0 votes Thank Flag Link Tue Jun 25, 2013
Because inventory is low, buyers are in a bidding war, and they offer more just to be able to buy the house and take advantage of the low interest rates.



Best Regards,

Real Estate Professional / Prestige Realty
Bianca Bennett / 602-570-7898
Bianca@InvestInArizonaHomes.com
Website: http://www.InvestInArizonaHomes.com
0 votes Thank Flag Link Fri Jun 21, 2013
Jen - The low supply of available homes does not meet the current demand, so prices are going up. Now that interest rates appear to heading up, more buyers are deciding that now is a great time to buy. If you are thinking of selling your home, call me for a Free Analysis of your Home's Current Value.

Rob Ryan
West USA Realty
602-828-1589
RobAZHomes@gmail.com
http://www.RobSellsAZHomes.com
0 votes Thank Flag Link Wed Jun 19, 2013
Low inventory and low interest rates.

Its tough for buyers and can be exhausting unless they are willing to spend more.

Need more listings.

Lucinda Tkach
602-799-6846
0 votes Thank Flag Link Tue Jun 18, 2013
Limited supply and a steady demand will raise prices. However, interest rates are starting to move up which will slow buying down. Inflation in the future which will cause another dip in prices.
0 votes Thank Flag Link Tue Jun 18, 2013
Hi Jen:

Yes. Supply and Demand. Supply low causes prices to rise. Mortgage rates remain low but rumblings they will start to rise. Those coming off of short sales and foreclosures since 2006 are now eligible to buy.

During the last year the Phoenix metro has led the US in year over year price increases.

ASU school of Real Estate predicts prices will continue to rise through 2014.

Give me a call if you have any questions.

Jeffrey Masich, Realtor, GRI, MBA
HomeSmart
Scottsdale
Arizona homes and land for purchase or sale
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
480-556-0940
0 votes Thank Flag Link Tue Jun 18, 2013
Very much strange.. Greed and Risk of Loss.. that is what fuels all markets.

Right now it is the seller that would like more and the buyer feels the risk of loss so the price will go up.
In a down market it is the other way around.
Risk of loss brings the seller to sell for less and greed brings the buyer to pay for the lesser sale.
0 votes Thank Flag Link Tue Jun 18, 2013
Yeah. I know it's all part of the market but I was just so shocked to see our floor plan going for mid $400's when it was just at something like the $320's a month ago.
Flag Tue Jun 18, 2013
Hey Jen,

I got a good laugh out of your comments about the neighborhood and especially about the HOA! I'm pretty sure that your neighbors would have similar comments. Really love your decorating! White looks great with Saltillo tile.

Larry
0 votes Thank Flag Link Tue Jun 18, 2013
Thanks Larry.
Flag Tue Jun 18, 2013
It is what it is right ? :)
Flag Tue Jun 18, 2013
Cash buyers have increasingly been paying in excess of list price as the inventory is low. This has skewed prices considerably. Represesenting 20% of the sales, they have had an impact on sales prices and average prices psf.
Web Reference: http://azmcdowell.com
0 votes Thank Flag Link Tue Jun 18, 2013
You have a lovely sweet home.
0 votes Thank Flag Link Tue Jun 18, 2013
Thank you.
Flag Tue Jun 18, 2013
Thanks for all the great feedback from everyone. Like I said, we're still a ways off from making a profit-selling point (need to be in the $500's) but it's good to know it's going up. Here's a link to a few photos of the house as-is.
http://sunsetsandswimmingpools.blogspot.com/p/our-desert-home.html
0 votes Thank Flag Link Tue Jun 18, 2013
Thank you guys. We like it. Definitely would like to make a few upgrades but we got lucky to have a VERY open floorplan and good bones and that helps. I think MMR is an insanely great investment overall. You cannot beat having so much in your own backyard. The parks, pools, library, schools, shops, trails. It's really special. My husbands favorite part is that he doesn't have to hit a stoplight to get to the grocery store. We're originally from L.A. so he's super spoiled now.
Flag Wed Jun 19, 2013
Nice home, Jen! Love all the white & black with small pops of color. Your commentary is funny! I have a buyer that is currently considering McDowell Mountain Ranch so I'm in your neighborhood often.
Flag Tue Jun 18, 2013
Very nice house and great home. Good luck, Jen.
Flag Tue Jun 18, 2013
That looks like my street
Flag Tue Jun 18, 2013
Dear Jen:

Here is my YouTube analysis of what the heck is going on.

http://www.youtube.com/watch?v=ER0VDbrV_4A

Terry S. Smith
47 Year Arizona Resident
Rain Dance Realty
Direct (602) 763-1858
ScottsdaleForeclosures@gmail.com
0 votes Thank Flag Link Tue Jun 18, 2013
Hi Jen,

Since March 2012, homes are selling quickly specially in certain price range and locations. Of course if the property has been priced right, remodeled or even updated sells faster and for higher price. Most of my listings or sales have been in multiple offers situations with full price or close to it.
Let me know if I can help you in buying or selling your property.

All the best,

--
SHAHLA MENTHA, ABR, e-Pro, REALTOR®
Executive Real Estate Consultant
Coldwell Banker Residential Brokerage
Direct: 602-741-0755
O Fax: 480-483-4917
mentha.shahla@gmail.com
http://www.azmove1.com
0 votes Thank Flag Link Tue Jun 18, 2013
It's not sudden at all. It's taken a long time for prices to climb back to this point. Just 18 months ago, when prices were LOW, people complained that houses weren't worth anything. There have always been houses that sell in a day - good location, correct pricing, extensive advertising results in success.

Sometimes the very same people who want top market money for their unpainted shack complain about the price of the houses they look at. Only the rich can have it both ways - because they don't need to buy or sell right away - they can WAIT for the best TIME for each.

There is always a solution to high prices - go find another house!
0 votes Thank Flag Link Tue Jun 18, 2013
Hi Jen, to answer your question about whether your home needs to be highly upgraded to sell, I would say that all homes have appeal as long as they are maintained. Certainly, a highly upgraded home may fetch a little more, but often the payback for upgrades is less that the cost of the upgrade. Usually a little "spruce up" is all it takes to make a house show well. A little paint, some new curtains, some flower, etc.

If you would like a free Market Analysis and some tips on staging your home for a quick sale, give me call. No cost or obligation.
0 votes Thank Flag Link Tue Jun 18, 2013
Not at all strange. We are reverting to our normal pattern after a severe downturn. This is a reversion to the mean. Our growth is fueled by low inventory due to Demand caused by historically low interest rates, re entry of short sale and bank owned refugees, low new home construction. The economic law of supply and demand are at work.
0 votes Thank Flag Link Tue Jun 18, 2013
There is a low inventory of homes right now making buyers look at fewer available homes causing a frenzy among buyers in certain areas to place multiple offers on one house. This can drive up home prices.
0 votes Thank Flag Link Tue Jun 18, 2013
If you price your house correctly it will sell quickly, upgraded or not! Location definitely helps. Houses that have been upgraded will typically bring a higher price, but because of the low inventory buyers are jumping at houses that need some work. I live in McDowell Mountain Ranch and I have seen prices steadily increase over the past 18 months.
0 votes Thank Flag Link Tue Jun 18, 2013
Great- Thanks Casey.
Flag Tue Jun 18, 2013
In this market, it doesn't take much for a home in a good neighborhood to sell and sell quickly. However, the need for marketing your home so that you get the best price has always been the key to success. Be sure that you take advantage of all of the marketing avenues available to you.

Larry
0 votes Thank Flag Link Tue Jun 18, 2013
Agreed. Thanks for the input Larry.
Flag Tue Jun 18, 2013
Gotcha. So will a decent shape house (not a lot of fixture type upgrades) in a great location get a good price? Or just updated homes?
0 votes Thank Flag Link Tue Jun 18, 2013
Thanks Chuck :)
Flag Tue Jun 18, 2013
It will get market value. Maybe a little better if priced correctly right out of the gate. We always hope for a multiple offer situation where the buyers increase the price of the home for you.
Flag Tue Jun 18, 2013
This is a great market. Low intrest rates. Also you are fortunate to live in one of the most popular ZIP CODES. Mcdowell Mountian ranch, and the surrounding areas appral to a lot of people because of the schools, access to the freeways, golf and much more. If you are thinking about buying in these areas, we can get you a home before it goes on the market. Also make sure you speak to a lender first so the transaction can move smoothly. Good luck.
0 votes Thank Flag Link Tue Jun 18, 2013
Not buying. I already own. Might be into selling if the prices keep going up. Not quite there yet. Thanks!
Flag Tue Jun 18, 2013
I agree with Joseph. This is part of the cycle. "Way up" is a very relative term too, the prices are on the rise, but not peaked yet in my opinion. The demand and inventory will eventually equalize to a healthy market, but the days of snagging property at 50 cents on the dollar are gone, at least in the valley.
0 votes Thank Flag Link Tue Jun 18, 2013
This has been happening for almost 3 years. Prices have been at records lows and so have interest rates so it creating the perfect storm!
0 votes Thank Flag Link Tue Jun 18, 2013
Not strange. This is how real estate cycles work. Sellers that have held off on listing their properties wait until inventory is low and demand is high and that causes prices to go up.
0 votes Thank Flag Link Tue Jun 18, 2013
So Asking prices are being met and/or exceeded?
Flag Tue Jun 18, 2013
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