Phoenix Housing Market Did Turn Around - Our Experience (Chandler: short sales, renting) - Arizona (AZ) - City-Data Forum

Potential_Landlord · 10-25-2009, 07:33 PM

We just had a bank accept our offer on a FC. We were looking in the North Phoenix area (take Union Hills & 24th Street as center of a circle with a 5 mile radius) for up to 200k. All the houses we were interested in and considered putting offers on had at least one offer already on them. The average of offers were 3 and one house had 7 offers in. Our "strategy" morphed into avoiding houses which qualified for FHA financing as 3.5%-only down + 8k first-time homebuyer credit qualified nearly everybody and that's why we saw the proliferation of multiple bids on these houses. So we started looking at more trashed FCs which FHA does not touch. Here we encountered less competition - I guess only investors would be interested in these. Still, there were offers in as well. I guess that's why Captain Bill stated earlier that he can't find deals as good as 6 months ago or so. In conclusion our experience showed us that at least the lower end of the Phoenix housing market has turned around and we are probably past the low point in prices. I would be interested in your experiences. - Thanks.

P.L.

Ritchie_az · 10-25-2009, 07:42 PM

I think the very lowest end of the local housing market hit rock bottom several months ago. However, the housing market as a whole has likely not hit rock bottom, and there are several indicators that suggest it may be another year or two before it does.

miamiman · 10-25-2009, 07:46 PM

The housing market here in Phoenix will not completely recover until at least 2012. It may shows some slight signs of recovery now, but luckily it will take awhile to build back up to where we were.

Potential_Landlord · 10-25-2009, 09:27 PM

Quote:

Originally Posted by Ritchie_az

I think the very lowest end of the local housing market hit rock bottom several months ago. However, the housing market as a whole has likely not hit rock bottom, and there are several indicators that suggest it may be another year or two before it does.

Ritchie_AZ,

I agree that the mid-to-high priced market segment will fall further. There seems to be a lopsided supply to demand ratio plus financing issues. What do you think what month did the low end hit bottom and up to what price would you consider the market which is already past the price bottom? - I'm just curious and we are certainly done house-shopping for years to come. It's always emotional and stressful. Thanks goodness we're done.
P.L.

Ritchie_az · 10-25-2009, 09:51 PM

"what month did the low end hit bottom and up to what price would you consider the market which is already past the price bottom?"

The "when" question has been discussed pretty thoroughly in other threads. I believe the month was May, but that is going off of memory, so someone correct me if I'm wrong.

The price bracket question is a little tougher. I'm going to say $100,000 and under. I think specific locations vary some, too. I believe where I purchased, the price bracket that has hit rock bottom is somewhere around $130,000 and under, while a place like Buckeye may be $90,000 and under.

greenthinker · 10-25-2009, 10:56 PM

Housing price increases or drops depends on the neighborhood you live. It is very local. Don't generalized the market. Find somewhere you like it, buy it if you think price in the specific area can keep the value. I just bought a house around Ocotillo area in Chandler. I think the area has a lot of growth protentials.

KarmaPhx · 10-26-2009, 12:36 AM

That is a great area you're choosing, north of Union Hills is better, and further from Cave Creek the better IMO.

The area around 16th St and Union Hills has a lot of homes that are really affordable, we have been looking at a few closer to 7th st for 60k.

YAZ · 10-26-2009, 12:46 PM

Quote:

Originally Posted by miamiman

The housing market here in Phoenix will not completely recover until at least 2012. It may shows some slight signs of recovery now, but luckily it will take awhile to build back up to where we were.

At least 2012.

But, I broke my crystal ball a long time ago, LOL.

We're planning on another "upgrade" around 2017, and won't even think about trying to sell until then.

azriverfan. · 10-26-2009, 06:04 PM

Quote:

Originally Posted by Ritchie_az

I think the very lowest end of the local housing market hit rock bottom several months ago. However, the housing market as a whole has likely not hit rock bottom, and there are several indicators that suggest it may be another year or two before it does.

Agreed, no one said the low end of the housing market hasn't hit the bottom but in general, the market hasn't hit the bottom. I'm just now starting to see the luxury housing market begin to dip but it didn't do anything for a long time.

Cyborg13 · 10-27-2009, 11:51 AM

I am currently looking at houses around the Hwy 51/Cactus area. Nearly all in my price range (under 150k) are short sales, and are getting multiple offers. Some of the ones I have looked at end up closing at around 25k-30k over list price, which is of course driving up list prices. I had looked some last winter on the west side (ended up renting instead), and it seems prices over there have gone up too, as there are significantly fewer houses listed under 100k.