That depends on the specific market area. The Phoenix area as a whole is still considered declining, however, there are some pocket areas within Phoenix that are relatively stable, meaning no dramatic or continuous decline or increase, and there are also some (few) areas where values have been increasing slightly over the past few months. In some specific market areas it also depends on the type of property.... more
I would have to agree with Jay, I wish I had a crystal ball to say exactly. What we can all tell you is that prices have come down anywhere from $60k to $150k +. If you buy now or wait a few months, it will still be a great deal. The good thing about Phoenix is there are still tons of people moving here. We are now 5th largest city in the US. We pushed Philadelphia into 6th place. The values will come back around to where they were 2-3 years ago in due time. Before the big boom Phoenix was averaging 6-7% equity a year, that is great! You don't find many opportunities to earn that much on your money. 43% in one year is unheard of and when you think about it not very practical hence the market we are dealing with today.
Even though housing has slowed down, retail and commerical development are still moving forward. There is tons of develpment still going on in the Phoenix Metro area. Check out my website for more information.
Hope this helps! Have a great evening.
If you give me the address of your brother's home, I can give you a B.P.O. (Broker Price Opinion). I highly doubt that a home in Scottsdale purchased a few years ago for 500K is now worth 1.3m but it is possible. In general we have had a 25 to 40% price increase in the previous few years and an 8.8% average decline in prices. Using general numbers if your brother paid 500K and it when up 40% it would have been worth 700K at the peak of the market and then come down to around 650K. Real Estate is VERY LOCAL. Your brother could be living in a very high demand area of Scottsdale and his home could have appreciated rapidly and not have come down. Scottsdale in general is a good are of the valley to purchase a home because of the world wide recognition that Scottsdale has. You might want to check out one of my websites: http://www.480ForSale.com where you can see all of the homes for sale on a map - you could zoom down into your brother's neighborhood and see what the asking prices in his neighborhood are.... more
A 1/2% rise in rates will cost the typical buyer $25,000 to $35,000 in purchasing power. I think buyers are confused about the rise or fall of rates. Wall Street is hoping the Fed drops the rates by September. But Bernanke will most likely stick to his guns. I am a buyer right now and locked in my rate a few weeks ago. I think there are a lot of people waiting on the sidelines because of how the media is sensationalizing the mortgage market. I would recommend helping your Sellers by educating your potential buyers on the negatives of waiting. Start by helping them decipher the newspaper headlines. In our market, prices are climbing although number of sales is slowing. Usually the press focuses on number of sales and doesn't highlight the fact that prices continue to rise for both single family homes and condos in our market. Hope this helped.... more
Our market is OK here in GA. I think the big difference between this year and last year is that people are really taking their time, and they are really negotiating much harder. I find a lot of stubborn sellers are sick of the whole 'buyer's market' thing and they would rather pull it off the market than give it away.
I think our average sale price dropped about 10k from last years numbers.... more