Market Update-January 2013
Although we don't have the fancy statistical analysis this month, a general discussion of market trends might be helpful. Bottom line, the market here in the greater Phoenix and specifically Avondale area should continue to rise as far a market prices for the remainder of 2013. That being said, limitations such as mortgage availability and the ability of appraisers to adjust with market trends will slow the growth somewhat unnaturally. We are currently able to genrally get at or above what a home will appraise for on a regular basis. This is most likely due to the two month lag time between when a home is sold and when it actually closes. This is simply a fact in a rapidly rising market that the new high prices of recent solds do not close and become usable by an appraiser in time to elevate current market value to the level of current market demand.
As more and more homeowners become less and less underwater and therefore decide to make a move which increases supply. The increase in supply should fully stabilize the Avondale market into a somewhat normal market by the middle of April so we can all move on with our lives. In a recent discussion with an appraiser, they stated that they are no longer using Bank owned and short sales for comparables (for many years they had to because there was nothing else) and they are adjusting upward for the age of the prior sales and Bank of America now requires the appraiser to use a comparable sale within the last 3 months instead of 6 months. This shrinking of the time frame available for comparable sales alone signals the robustness of the area market. As always if you want a reliable agent to get the most money, in the shortest amount of time, with the fewest problems, email or give us a call.