The 2008 real estate market has been a roller coaster as the challenging economic times have affected the country. A multitude of factors contributed to this pendulum swing - the hyper activity of buyers jumping in to the market; bad mortgage lending to borrowers at all levels eventually leading to a flood of short sales and foreclosures. Consumer debt, the unstable economy; and the upcoming presidential election are also important factors.
Like the rest of the country, the greater Phoenix metro area has transitioned from the sharp increase in value during the market boom of 2004/2005 to declining equity shaped by the market correction of 2006/2008. According to the Office of Federal Housing Enterprise the overall the decrease in equity quarter 2 1007 thru quarter 2 2008 was -16.7%. However, the equity increase from 2001/2007 was roughly +88+% for single family homes and +70% for townhomes/condos. Homeowners who purchased their property prior to 2004, still have a favorable equity position. The historical average annual increase in equity ranges from 3-6% depending on the city/area.
The good news is that 2008 sales/closing are increasing monthly. Valley wide the total number of closed sales closed sales in September was 6,168, greater than any month this year by over 200 sales. This is an 81% increase over September of 2007 and a 115% increase over January of this year.
MLS Inventory - All dwelling types Valley Wide
When will the market finally hit bottom and start bouncing back? A plethora of ‘experts’ differ on their opinions of this enigma. If only we had a magic formula or crystal ball to provide us the answers. The local market has seen a gradual increase in sales throughout 2008 which points to the reestablishment of a stable housing market. One thing is for sure, once the media announces we have ’hit bottom’ it will be too late.
This is still a buyers market and an excellent time for first time home buyers and investors as there are some great bargains available in Scottsdale and the greater Phoenix metro area allowing buyers the ability now afford to purchase in some of the exclusive areas. The favorable interest rates and lower prices provide a greater opportunity to gain better appreciation over time.
Search the Scottsdale MLS
Search the Greater Phoenix MLS
When looking to buy and/or sell, or know of anyone that is, feel free to contact us.
Gary and Claudia Scott, REALTOR®, GRI
Call Toll Free at 866-464-2140
or e-mail - Garyandclaudia@cox.net
www.AZ-real-estate-sales.com
