1. Choices, Choices, Choices.
Currently, there are about 55,000+ resale homes on the market in Maricopa County (the Metropolitan Phoenix, AZ). Regardless of the price range a buyer desires, there are plenty of homes to choose. Just a few years ago the resale inventory dropped below 5,100 units. A buyer was forced to make compromises if they were going to locate the home of their dreams. There is a great selection of single family homes, condos, and townhouses. You can find large lots, small lots, and a lot that will accommodate your SUV, RV, or boat. There are lots of options for buyers in this Arizona buyer’s market.
2. Real Financing Is Back.
The zero down, no doc, adjustable, sub-prime loans are basically gone. Fixed rates are back. FHA financing, first time homeowner bond programs, special loans for teachers, and police officers are back. It's a great time to buy real estate in Metropolitan Phoenix, Arizona!
3. Location, Location, Location.
We know that we can change the home's features, colors, etc, but we cannot change it4 location. Today's buyers can find homes closer to work, school, and sport arenas. In the past buyers flocked to the out shirts of Phoenix, such as, Surprise, El Mirage, Laveen, Casa Grande, Maricopa, and Queen Creek in order to find affordable homes. In this market, reasonably priced homes are within biking or walking distance to malls, rapid transit lines, and families.
4. Plentiful of Spec Homes.
These are homes that buyers had purchased, selected the upgrades, the homes are built, but, prior to closing, the buyer decided to back out of the deal for whatever reasons. In the recent pas, buyer had to play the lotteries game, being placed on the waiting lists for months in order to obtain new construction. Some buyers slept in their cars in order to get to the head of the lines. Now, the buyers can select from thousands move in ready spec homes. Many of these spec homes are loaded with upgrades such as, stainless steel appliances, premium carpet, tile, bay windows, lot premium, landscaping packages, pool, and closing cost assistance.
5. Fewer, If Any Competition From Investors.
It is estimated that 33% of all sales in 2005 were to investors. Most of them paid cash for their homes. These non-owner occupied buyers caused the market to inflate and affordability to decline. Mortgage fraud became a commonplace in Arizona. It's a great time to buy without having to compete with hundreds of prospective landlords.
6. No Bidding Wars.
In 2005 we had clients that made an offer on eight homes. They lost the first seven to the “bidding war”. Other buyers bid the properties up substantially from the original asking price. There were escalation clauses where buyers authorized their agents to outbid other offers by thousands of dollars. Currently, there is no competitive bidding in this Arizona buyer's market.
7. Sellers Want You To Make An Offer.
Serveral years ago when you made an offer, the only question was how high above the list price could the buyer reach in hopes of being the best offer on the table. Today the sell price list vs. price ratio is about 96%. A seller will not be insulted if you 'make them an offer they can't refuse'.
8. Take Your Time Is OK.
In the hot seller's market, everything was rushed. Find a house before other buyers did. Hurry up and make the offer and made sure you have cash between $20K-$30K in hands to pay for the difference on the purchase price and the appraised price. Today a buyer can take their time. Look at multiple homes and think about your decision.
9. Due Diligence is Encouraged.
In this market a buyer is encouraged to obtain a home inspection, termite inspection, and appraisal. In 2005 many buyers waived these contingencies as well as agreeing to forfeit the earnest money after the inspection period in order gain an advantage with multiple offers.
10. Repair Requests Are OK.
In Arizona, buyers have 10 days after the acceptance of the contract to perform any inspections they wish and submit any repair requests to the seller (s). The form that licensed Realtors in AZ use for these repairs is called "Buyer's Inspection Notice & Sellers Response" (BINSR). In the seller’s market, such as in 2005, many sellers insisted the home was sold 'as is'. Many times, there were back-up buyers waiting for a primary buyer to upset the seller whose home was increasing in value almost daily.
What else? Arizona Does Have Strong Job and Population Growth
AZ Unemployment Rates
- 2000=4%
- 2006=4.2%
- October 2007= 3.5% (AZ Dept of Economic Security)
AZ Principal Economic Activities
The major employment sectors in Arizona include aerospace, electronics and semi conductor manufacturing. Tourism, business services and back-office operations are also important sectors. Arizona's original export activities - agriculture and mining - remain significant in many rural parts of the state. Based on sheer size, the real estate and rental industries, the diverse tourism sector, and government are the largest economic sectors in Arizona.
Population Growth
–23% increase from 2000 to 2006 –5,130,632 in 2000 to 6,305,210 in 2006
That is not it, there are large areas of homes with stable values, inner City areas with very little land to build on, and older established neighborhoods. What you waiting for? Call us today at 480-217-7440.
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