Phoenix Real Estate: A Tale of Two Markets
Posted on August 3rd, 2009 by Jonathan Dalton
The Phoenix real estate market currently is a buyer’s market.
The Phoenix real estate market currently is a seller’s market.
Both statements are correct and both statements are incorrect. It just depends on the type of real estate you’re trying to find.
As anyone attempting to purchase a bank owned home, or really any type of property, for less than $200,000 can attest, the Phoenix market has been a sellers’ market since the end of March. Multiple offers are the norm, list price usually represents a starting point and it usually takes several tries to secure a home.
As anyone attempting to purchase a home over the $200,000 mark and especially over the $300,000 mark, the Phoenix market has remained a buyer’s market. There are some exceptions - bank owned homes and short sales in the plus-$200,000 range still attract an inordinate amount of attention - but in the higher price points there remains the opportunity to negotiate down from the list price and create your own deal.
Why the dichotomy? There are a number of factors and none are all that mysterious - there are more buyers who can afford a $100,000 home than a $350,000 home. There’s more demand than normal in the lower price points because of the $8,000 tax credit for first-time buyers purchasing before December 1. And financing remains dicey in the jumbo arena - $417,000 and up.
So while there’s considerable roiling on the sea floor, the top of the lake remains serene and doesn’t fully give a hint as to what’s happening below. (I could mix another metaphor here and throw in undertow but I think you get my … um … drift.)
Success in this market depends on knowing the current condition of the market. So just because tomorrow’s inventory update on this site will show the Phoenix market overall is a sellers’ market, that may not be the case for all types of homes in all areas and at all price points.
Much like a large ship’s captain, it helps to have a harbor pilot with local knowledge who can keep you off the shoals. That’s where someone like me can help. And that’s where we’re mercifelly going to stop before I work in another nautical reference.
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