Many properties are receiving multiple offers (over a dozen in some cases) within days of being listed and it is very common for those properties to go for over asking price. Some might even argue that it seems that it is the appraisers being extra-conservative with their evaluations that is keeping ther prices down.
The pressure definitely seem to be there. You should reach your own conclution, but the fact is that homes in the area rutinely going for more than asking price and multiple-bids being more common every day...
Carlos J Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -
Yes the Market has warmed up as much as the weather.
Of the 12 homes I tour this weekend 7 had contracts.
I do have a theory which I have posted early, about Bank Owned Homes & Short Sales.. here is the copy & paste.....
We are in a Bank Owned market. Most every buyer wants a Bank Owned Home.
The Good people running the banks are not dumb. They are Ivy league MBA`s, who began playing monopoly when they were 5 years old.
If I had a thousand homes to sell, and I knew that there would be a thousand more in three months, I would only sell them 10, 30, 50 or 100 at a time. Get rid of the dogs first.
The Banks know the numbers, They know what loss, will go in which quarter. They know what the affordability level is. They know credit scores & interest rates.
They can see the future.
Control the inventory, Control the price, Control the market.
We all know 80% of Short sales become Bank Owned property`s. Most if not everybody, who bought between the end of 2005, and the beginning of 2007 is upside down. So how many Short Sales do you think are in the pipes?
How many Bankruptcy commercials do you see. Lawyers are not dumb either.
So back to my theory. Drag out the short sale process, delay the inventory, manipulate the market.
All perfectly legal
That`s just my Theory / Opinion.
As far as corruptions goes, as my friend Goat has pointed out, I`m not sure, myself I really just don`t care for Maricopa. Still to far out.
Good Luck on your search
3 types of homes are frequently multiple bids:
1. Homes with pools (by the way, if you are a snowbird, coming down from Nov-March) You need te realize that even in AZ where it is hot, the pools are to cold to swim in (unless the pool is heated)
2. Homes backing/in golf course communities are sought after)
3. Homes that have a unique elevation/curb appeal are sought after also.
My idea would to but a "regular house" and add a pool which can start at $14000. That will save you much of the multiple offer crap.
Please let me know. I work exclusively in Maricopa.
As to your question, there is a 1.6-month supply of homes in Maricopa ... at the current sales pace, all 463 homes on the market would be sold in about six or so weeks if nothing new came on the market.
Maricopa isn't the hottest market in the greater Phoenix area but it's one of the top five.
If you're calling on homes and discovering there are offers, I might suggest getting in touch with an agent who can check the MLS and see what's really available and get you set up with automated updates so you can see the latest listings as soon as they come to the market. If you're counting on calling on signs are trusting listing aggregators like this or Zillow, you're going to continue running into homes long since sold.
This has started happening in January and I could see that coming but not with ALL properties.
The hot market that is being sopped up like gravy on a Thanksgiving plate are homes under 250k because of the affordability, low interest rates and first time home buyer incentives.
Investors are also diving in to the market buying homes to lease them back and hold them for a few years as people that had to give up their homes are looking for places to rent.
In April of this year we sold more homes in this range than we had during the boom year of April 2005 and although it is showing some sign of slowing it certainly has a lot of momentum to carry us along through to 2010.
I wrote a recent Blog on Trulia that describes why you should be purchasing a home now that you might benefit from reading ton understand the coming results of a government spending spree.
Check it out: http://www.trulia.com/blog/stew_keene/2009/05/another_4_bill
Paul is correct in that you should be working with a Realtor that can help you get your foot in the door first with an offer.
Thanks for posting such a great question here on Trulia!
Stew Keene - Signature Realty
2008-2009 Master of Real Estate Award
GRI, ABR, CNE, MRE, E Pro, AHWD
Buyer's Agent Realtor