May Market Update
Wow, what a rapid change we have seen in the real estate market especially since August. With a steady trend towards rising prices, an ever shrinking number of homes available (this is the lowest amount since the crash began), and a steady supply of both investors and regular homebuyers, you don't have to remember much from your high school economic class (when high schools offered econ) to determine which way the market is going. UP UP UP!
I believe the market will continue upward at a steady but rapid pace until one of two things happens. The first would be the point where investors reach the price point that they believe Arizona is no longer a good investment. This pull back of buyers will likely simply stabilize the market at that point with no price decrease anticipated. We are apparently not rapidly approaching that point because every offer we write continues to have multiple offers on the property and we are usually out bid by a cash investor offer.
The second likely scenario that may put the brakes on appreciation is when we reach the price point that attracts ALL of the builders back into the market. This slow addition of homes to the total inventory would be a welcome relief right now. Many of the builders are actually capping the number of homes they can sell in any given month to a very small number but when prices get back to the point where new development or in fill of all of the existing lots can take place, the market again should stabilize without any short term depression in prices.
If you want to look at the detailed pictures of our market please click on the market report below.