Phoenix Real Estate Market Keeps Tanking (Scottsdale, Chandler: appraise, property, area)

[MN-Born-n-Raised]

Originally Posted by Captain Bill

We now have only a 2 week supply of REO listings, around 1,200. That is for all type homes in the Phoenix Metro area. (Excluding AWC)

Active short sale listings are also only an 18 day supply, numbering around 1,200. (Again excluding AWC)

The supply of distressed listings <$150k has declined 93% since the first of the year and that has resulted in higher prices. The average annual appreciate rate now stands at 16% and increasing.

I am feeling smarter and smarter for beating the rush! The Phoenix area was soooooooooooooooooooooooooooo under priced. People thought it was going to drop even more. I paid $51 a square foot for a VERY nice home. I feel sorry for people who listened to the wrong camp.

[Ponderosa]

Originally Posted by MN-Born-n-Raised

I am feeling smarter and smarter for beating the rush! The Phoenix area was soooooooooooooooooooooooooooo under priced. People thought it was going to drop even more. I paid $51 a square foot for a VERY nice home. I feel sorry for people who listened to the wrong camp.

It still is. In most price classes sales prices don't match improvement and construction costs. There is still significant upside.

[MN-Born-n-Raised]

Originally Posted by Ponderosa

It still is. In most price classes sales prices don't match improvement and construction costs. There is still significant upside.

You are correct. It's still under priced.

My main point was that the writing was on the wall. Prices were going to go up and the downside was absolutely negligible. All we needed was something to light the fire. It turned out to be super low interest rates.

For goodness sake's. I paid $51 a square foot for a 2006 built home in a beautiful community using quality construction. I just didn't get why people were convinced that the Phoenix RE market was going to tank further.

Some doomers are still hanging onto "Shadow Inventory". While they are waiting, it's going to go up even further. If they point to our $15T of national debt, then I'm ready to listen to their position. But Shadow Inventory is such B.S.

[Captain Bill]

Originally Posted by MN-Born-n-Raised

You are correct. It's still under priced.

My main point was that the writing was on the wall. Prices were going to go up and the downside was absolutely negligible. All we needed was something to light the fire. It turned out to be super low interest rates.

For goodness sake's. I paid $51 a square foot for a 2006 built home in a beautiful community using quality construction. I just didn't get why people were convinced that the Phoenix RE market was going to tank further.

Some doomers are still hanging onto "Shadow Inventory". While they are waiting, it's going to go up even further. If they point to our $15T of national debt, then I'm ready to listen to their position. But Shadow Inventory is such B.S.

The shadow inventory will have very little effect on our Phoenix Market. The reason is, we have such a small number of distressed listings now that any surprise homes being released would be welcome.

The NOTS have declined, and there are only a few REO's that aren't on the market. If the banks were to release all the homes that they don't have listed today, they would probably be gone in a couple weeks.

Good news for traditional sellers is that Traditional Listings Under Contract have increased 181% from 2,159 to 6,071 from the same time last year.

[bgray9]

Originally Posted by MN-Born-n-Raised

You are correct. It's still under priced.

My main point was that the writing was on the wall. Prices were going to go up and the downside was absolutely negligible. All we needed was something to light the fire. It turned out to be super low interest rates.

For goodness sake's. I paid $51 a square foot for a 2006 built home in a beautiful community using quality construction. I just didn't get why people were convinced that the Phoenix RE market was going to tank further.

Some doomers are still hanging onto "Shadow Inventory". While they are waiting, it's going to go up even further. If they point to our $15T of national debt, then I'm ready to listen to their position. But Shadow Inventory is such B.S.

Agreed that things are looking pretty positive in the Phoenix real estate market, and the main possible hang up is if there's a major national/international economic issue (debt, Greece, Spain, Iran, etc.). That throws the economy for a loop. It's really quite an interesting market these days in Phoenix. We're certainly glad we closed in January and aren't out there looking anymore.

[ReadyFreddy]

We're certainly glad we closed in January and aren't out there looking anymore.

Yes, me, too.

I bought my last house in 4/04 and it was right before the market shot way, way up (and then collapsed but at least I bought pre-bubble), so this is the second time I've felt like there was some good luck with my timing.

[Newporttom]

I was also able to get in under the "rush". Bought 2 in Avondale. $54 a sf and $59 a sf. I'm not looking to buy anymore but I've been watching the market, and watching the under $100K home disappear as soon as they come on the market.

So I've been surprised to see MLS 4738434 hanging around without an AWC. Any guesses why it wouldn't have been gobbled up?

[azriverfan.]

I'm glad I waited. I would have lost money had I rushed to jump into the market and listened to the experts. I'm looking at the 1 million + price range and am interested in Paradise Valley, Scottsdale, Ocotillo (Chandler) and Arcadia. I know the average home in PV dropped by 100K over this past year so I'm happy I waited. I've also noticed the supply of homes in this range have improved for what I'm seeking. There are a lot more homes to choose. Most of the homes I'm pursuing have dropped or being foreclosed on. It's only getting better for me.

[themudpuppy]

Originally Posted by Newporttom

So I've been surprised to see MLS 4738434 hanging around without an AWC. Any guesses why it wouldn't have been gobbled up?

It looks like a nice house, and a great price too. The listing says "multiple offers received".

[Newporttom]

Oops. I missed that. Thanks