That being said, the lenders now have in place the proper mechanism to properly notify homeowners in default that they are going to foreclose. When a homeowner receives this notice of default they have 90 days to come current with all past due payments and penalties. Many homeowners will delay the foreclosure by looking into modification options, thus pushing the eventual foreclosure or short sale listing out further than the original 90 days. As more homeowners feel the pressure to sell or let the home go to foreclosure inventory will tick back up giving buyers more options. I think Q3 will bring a slight dip in property values before we see some stabilization in 2013 and look for slow, healthy appreciation in 2014.
Of course, you must take into account that mortgage rates are so ridiculously low that its hard to imagine that both pricing and rates will be this low at the same period of time, which still makes it a great time to buy.
As I tell all of my clients, there is a lot of terrible houses right now selling for more than they should and let other buyers snap those up. When you do find the house you really love jump in with both feet and get that home so you can take advantage of these historically low rates and home prices.
Hope this helps
For example, is inventory increasing or decreasing?
What is the average days on market before a home sells (and is that trend increasing or decreasing)?
My favorite is figuring out the "absorption rate"! Take the number of active listings and divide the number of sales in the past month to figure out how many months of inventory there is. Is that number increasing or decreasing?
If there is an excess supply, prices will drop. Conversely, if demand exceeds supply prices will firm up and increase!
Real estate typically goes in 5-7 year cycles so this cycle of dropping prices should for the most part be over.
Hope that helps!
As it mentions, you shouldn't necessarily expect much in the way of price drops overall. If anything, the market is certainly lending itself to showing prices increasing. Rents are also increasing (see here: http://richardschulman.com/2012/05/10/news-for-investors-ren ), yet interest rates are still low for the time being - making this an interesting time to buy!
Keller Williams Realty
But as a general info, the prices in some area will level out and in other they will still go down somewhat especially if and when more foreclosures and short sales hit the market. And then there are a few markets where the prices are going very slightly up, after they have been going down in a big way.
YourChicago and Northern Illinois - NorthShore Specialist
And, good luck. Now is the best time to purchase a home I have seen in many, many years.
Russ Lyon Sothebys
MOST buyers are looking to buy a monthly payment.
If rates go from 4% to 5% then the price a house just went up by 25%
That would me the price of a home would have to fall 25% (NOT likely) just to stay even
Rates WILL NOT stay low forever, they will eventually go back up.
Hope this helps.
Terry S. Smith
Arizona Resident for 46 Years
Grew up in Scottsdale, AZ
DPR Realty LLC
8341 E. Gelding Drive
Scottsdale, AZ 85260
My clients in the higher price points are finding homes that they can bid on without multiple offers yet some sellers are not priced correctly so coming to terms is a longer discussion that sometimes works and sometimes the buyers move on.
The housing inventory is about half of what we need to see to be balanced. Beginning of 2011 we had about 55k units to shop from sustaining the buyers market we've been in. While sales met some record numbers during these months our increase in inventory did not and we are now under 15k units to shop from where a balance is about 33k.
Prices could have some variables on a global scale that could effect a drop in latter part of the year yet it is all prediction vs ability to give fact on this.
If we had too much inventory again, a global dissonance, jobless rate increase this could shift demand and supply and put a strain on values again. However, what I see is that prices are increasing in certain price points which returns to 2004 levels where we were affordable but caution to all not to be part of 2005/6 increases. There is a balance.
One quick example is a home at $185k list gets bid to $218k which is an immediate 15% appreciation if the appraiser values it there BUT guess what...it's a cash offer so no appraisal will be done. Once closed = new comparable and that just has to happen a couple times and the neighborhood just got their face lift. Appraisers do need to reflect on this and adjust so we see a healthy improvement not a repeat of the past.
AZ Real Estate Consultants
Keller Williams Arizona Realty
If you need assistance with buying or selling in the Phoenix Metro area, please do not hesitate to contact us. You can also search the official live MLS just like we do through a link on our website at http://www.CunninghamHomesAZ.com
Ron and Brenda Cunningham
West USA Realty
* Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley" *
Keller Williams Integrity First
No one answer is correct without knowing what bracket you are actually interested in.
We are in housing, what price range?
Scottsdale or some other area?
Due to low inventory the prices are starting to go up and buyers are "bidding" on homes. A house for sale that is in good condition we are now getting 10 offers + at above listed price in increments of $10,000 within 24 hours. That is the market today in "certain" area of the Valley.
Please email or call me for more details.
West USA Realty
I work the Scottsdale area and in both the Rental market and Sales market the prices are going up as well as having multiple offers submitted in both aspects. If you would like more information on trying to get the upper hand on a prospective property please contact me.
Have a GREAT day!
Vivien L Biggs PLC
Prudential Arizona Properties
Check MLS for homes on my website
All indications are we bottomed out late last year. The over-all Phoenix market has experienced slightly increasing prices for the past 5 months. One analyst predicts The Valley will see 6.5% increase over the next year, with some neighborhoods already experiencing that. As indicated, many of my clients have been out looking for some time now and are experiencing bidding wars and accepted prices above list price.
So, nobody knows for sure, but things have changed dramatically in the very recent past. This is the Valley of the Sun, after all, and it is hard to keep people away for long. I am sure not surprised we are one of the areas rebounding the quickest from the housing bubble which burst some 5 years ago.
Please email me if you'd like to receive daily or weekly market insights for a particular section of the Phoenix market.
Steffy Hristova, MBA, SFR, RealtorÂ®
Tel: (480) 966-9353 Fax: (602) 507-3703
3131 E. Camelback Rd. #125
Phoenix AZ 85016