A Look Back at 2013 Phoenix Real Estate: We are balancing out.
By Amy Gerrish,
Taking a look back at the real estate data of the Phoenix Metro we see a much clearer picture that the market is in fact balancing out. In fact, going from an inventory high of more than 50,000 homes in 2009 to a low of 8,000 during the summer of 2012 has been a bumpy ride. Current inventory of 24,209 clearly states that we happily balancing out.
Seller confidence in early 2013 had brought sellers out the woodwork. Many had purchased in 2009 through 2011 for a great deal and have been able to sell, without having to do a short sale, walking away with equity in their pocket.
Many who have been under water in equity are now at break even point or even at point of positive equity back in their property. Many have been waiting on this day to finally sell their current home without recourse from their lender on having to do a short sale. Of course, not everyone is experiencing new equity, so short sales will still be around for a few more years.
One of the biggest positives appearing as we roll on into 2014 is that home buyers will have more to choose from along with more negotiation room. This is such a welcome relief for buyers. In the past few years buyers have had very little negotiating room. Most homes had multiple offers on them, so not only were they paying top dollar, but just getting an offer accepted left very little room to negotiate repairs because there was always an alternate buyer waiting in wings to buy the house “as is”.
Just like 2012 another confidence builder for home owners looking to sell is the abundance of cash buyers in our market. We are still a magnet to 2nd home vacation buyers, foreign vacation buyers and investors. While the number of cash buyers has a fallen a bit, we are still at 39% for 2013 compared to 43% in 2012. Buyers from all walks of life are purchasing homes with cash from a $10,000 property to a $9.2 million estate in Paradise Valley.
The agents in my office are definitely excited about working this balanced market so that both buyers and sellers are experiencing a mutual win-win.