have the phoenix markets stabilized or are the prices continuing to fall?

Asked by Capthook, Scottsdale, AZ Mon Apr 7, 2008

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Richard Dobbles’ answer
Richard Dobb…, Agent, Scottsdale, AZ
Mon Apr 7, 2008
Shane, per the Arizona Regional Multiple Listing Service records, the median price of a home in Metropolitan Phoenix has not stabilized. The median price has decreased 8 consecutive months and now stands at $213,000. I would expect that trend to continue when the data for March is released. Please remember, this number is for the entire metropolitan area. What does show signs of stabilizing is the inventory of homes on the market. That number has been around 53,000 for 7 consecutive months and I expect no change for the month of March. Call or email if you have any other questions.

Rick Dobbles
The Berg-Dobbles Team
2 votes
David - Appr…, , Maricopa, AZ
Mon Apr 7, 2008
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.
1 vote
Roberto Ribas, , Scottsdale, AZ
Tue Jul 15, 2008
Wow all these answers saying it is stabalizing!!! Yet strangely enough, the entire metro is dropping at the fastest rate ever, even scottsdale... hmmm.
scottsdale dropped over 10% year to year, as did every other part of the valley... Here is the newspaper article.

foreclosures broke another record in june, and so did notice of future foreclosures...

If stable means, "prices are dropping like hell, the fastest downward rate ever" then I guess its stable.
0 votes
Don Reynolds, , 85239
Sat Apr 26, 2008
The Phoenix market is like "Micro-waved Spaghetti" some areas really got pummeled on values over the past 3 years. Maricopa, Queen Creek and Laveen are examples. In those areas prices have dropped 20% to 40% off the market highs. However, there are some areas where values have remained stable. In the last 3 weeks, I have seen an increase in the number of homes sold around my area (Ahwatukee 85045 and 85048) things are definitely picking up according to my appraiser friends. While refinances are tough to impossible for people who bought at the top of the market. Purchases with FHA and VA loans are increasing.
0 votes
Jon Griffith, Agent, Scottsdale, AZ
Thu Apr 24, 2008
If you look at history, you will see that even though we have experienced a decrease in prices overall, prices will rebound. It's the nature of the market. Since we spend too much time looking into the past, we forget about the fact that the future looks bright. If you stick to the long-term investment opportunity that real estate presents, you will probably come out ahead. We are, in my opinion, nearing the bottom of the curve, which means only one thing. Up is the next direction.
0 votes
The Amy Jones…, Agent, Chandler, AZ
Mon Apr 7, 2008
Hi Shane,
If you'd like to watch the weekly market statistics in the East Valley, I have a page on my website that will site the statistics by city (I've included a link to the page below). This would probably help answer your question.
0 votes
The Urban Te…, Agent, Phoenix, AZ
Mon Apr 7, 2008
Are there specific areas you are interested in knowing about. The question, have the Phoenix markets stabilized is to broad to answer with certainty. There are so many factors affecting price stability. We are looking at this question on a case by case basis.

I can say with certainty sales are on the rise. The office I help manage had a 30% increase in escrows in March as compared to February. We are seeing similar activity being reported throughout the industry. If the tried and true supply and demand model works once more, the increase in demand (sales) should produce more price stability in many parts of the Valley.
Web Reference:  http://www.UrbanTeamAZ.com
0 votes
Nancy Basing…, , Scottsdale, AZ
Mon Apr 7, 2008
Hi, Shane -
It's interesting that your question talks about Phoenix markets, plural. There are a number of way to view the Phoenix market. In fact, what we're seeing in the lower-priced home market (under $200K) is a small sales increase, with stabilizing prices. Another market that has stayed somewhat stable is the high-end market; homes in the multi-millions. There of course were price corrections, but the values haven't dropped precipitously at the high end. Interestingly, some zipcodes in the greater Phoenix area have actually increased in value. For instance, the median home price in three Scottsdale zipcodes appreciated in value by 3.9% - 6.9% in the period between 2006 & 2007. Bottom line, while some segments of the market continue to have price reductions, a few are continuing to go up. Will prices continue to go down? Homes prices that were inflated over the past couple years probably still have some room to drop, but because more inventory is selling, the price reductions will likely slow. If I can answer any other questions, or help in any way, please let me know.
Regards from paradise,
0 votes
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