Phoenix Buyers Only Want Cheapest Homes (for sale, real estate, renting)

[azriverfan.]

The article below sheds light on the discussion we've had regarding the question of Phoenix being a "Sellers Market"

"Phoenix Buyers Only Want Cheapest Homes"

The median sale price held steady month-to-month but dropped below the year-ago level for the 10th consecutive month as many investors, cash buyers and first-time buyers continued to chase sub-$100,000 homes, a real estate information service reported. Sub-$100,000 home sales represented 40.2% of all April transactions, compared with 40.8% in March, 29.3% a year ago and 37.9% two years ago. Last month buyers paid a median $119,900 for all new and resale houses and condos that closed escrow in the Phoenix area.

Phoenix Buyers Only Want Cheapest Homes - TheStreet

[Howard Roark]

Cheap homes make me think of meth heads. I will wait awhile. For now my budget is $200,000 for a home/condo/loft. And it will be the least expensive of the places for sale (and in recently sold) in that neighborhood. But I can see $250,000 houses today selling for $200,000 in a couple of years. I can wait.

[Captain Bill]

Quote from Phoenix Buyers Only Want Cheapest Homes

The Phoenix area housing market lost momentum in April, when the number of homes sold fell short of both March and a year earlier.

Their statement is not correct:

Below are the actual sales numbers for all types all Phoenix areas.

8,809......Sales March 2010
9,155......Sales April 2010
8,920......Sales May 2010
9,151......Sales June 2010

9,974......Sales March 2011
9,470......Sales April 2011
9,845......Sales May 2011

The highest monthly sales on record from 2001 to present was 10,213 in June 2005.

[azdr0710]

hey Capt.....in your records, do you have the month with the lowest amount of total home sales (since 2005)?....guessing it was in 2008 or 2009....

thanks a lot....

[Captain Bill]

Originally Posted by azdr0710

hey Capt.....in your records, do you have the month with the lowest amount of total home sales (since 2005)?....guessing it was in 2008 or 2009....

thanks a lot....

Yes the lowest sales during the period 2001 to 2011 was 2,863 Sales in Jan 2008. (All types residential in the metro area)

[Captain Bill]

Originally Posted by Howard Roark

Cheap homes make me think of meth heads. I will wait awhile. For now my budget is $200,000 for a home/condo/loft. And it will be the least expensive of the places for sale (and in recently sold) in that neighborhood. But I can see $250,000 houses today selling for $200,000 in a couple of years. I can wait.

Howard, I hope you have to pay $400,000 for that home in a couple years.

I'm not wishing you bad luck, but since I own properties today, I obviously hope to see my properties appreciate during the next few years.

[Howard Roark]

I understand

But then if I'd have to pay $400,000 and if my net worth does not justify that amount to spend on a box, I will not buy. I'm in no hurry to buy. In fact, I would probably get buyer's remorse if I buy a $200,000 house in a couple of years, thinking I locked myself in when maybe I could be in Portland or San Francisco!

Originally Posted by Captain Bill

Howard, I hope you have to pay $400,000 for that home in a couple years.

I'm not wishing you bad luck, but since I own properties today, I obviously hope to see my properties appreciate during the next few years.

[momtogrif]

Originally Posted by Howard Roark

I understand

But then if I'd have to pay $400,000 and if my net worth does not justify that amount to spend on a box, I will not buy. I'm in no hurry to buy. In fact, I would probably get buyer's remorse if I buy a $200,000 house in a couple of years, thinking I locked myself in when maybe I could be in Portland or San Francisco!

Well, renting gives you the opportunity to leave and go to Portland or San Fran whenever you want! So, no need to sit around here and wait for our house prices to fall to zero, you can giddy up and head out.

[Boompa]

Originally Posted by azriverfan.

The article below sheds light on the discussion we've had regarding the question of Phoenix being a "Sellers Market"

"Phoenix Buyers Only Want Cheapest Homes"

The median sale price held steady month-to-month but dropped below the year-ago level for the 10th consecutive month as many investors, cash buyers and first-time buyers continued to chase sub-$100,000 homes, a real estate information service reported. Sub-$100,000 home sales represented 40.2% of all April transactions, compared with 40.8% in March, 29.3% a year ago and 37.9% two years ago. Last month buyers paid a median $119,900 for all new and resale houses and condos that closed escrow in the Phoenix area.

Phoenix Buyers Only Want Cheapest Homes - TheStreet

I just purchased a 4 year old Town House for $48.50 a sq ft. That's half of construction cost. That's not a Meth Lab, I paid cash for it. The scary part is that people are borrowing money to buy similar homes as "investments". The Real Estate Brokers are trying to ensure this market will never recover

[Captain Bill]

Originally Posted by Boompa

... The Real Estate Brokers are trying to ensure this market will never recover

Can you explain that statement, because I don't understand it.

I'm a real estate broker, and I would love to see the market recover. I have a residence and several investment properties, and a recovery will make my properties more valuable.

I know plenty of other real estate agents and brokers who share my opinion.

I do a lot of networking on Realtor sites with Realtors across the country and Canada, and have never heard one Realtor say they don't want the market to recover.

And, we cannot control the market in either direction even if we wanted to.