People trying to sell a home today ask me, “Why do I have to sell such a low price”?

The answer is at once simple and complex. The Phoenix AZ market is currently driven by the lenders selling foreclosed properties. In addition, there are many people who face foreclosure. Currently there are over 40,000 notices of default pending. These  factors depress listing prices.

Buying activity is centered on these foreclosed homes, with the dominant players being investors chasing these homes with CASH. It is very difficult for the traditional buyers to successfully compete in this market.

Sun City is slightly different, in that there are few foreclosed homes and buyer activity has been stable, if lower than normal, for the last few months. The problem here is that the prospective buyers who would like to sell the old family home and move into an adult community cannot sell because they are competing with the REO (foreclosed) sellers.

My analysis of the current conditions lead me to believe that sales prices will stabilize, indeed may have already stabilized, but cannot go up any significant amount for at least 2 more years.

It remains difficult to sell a traditional listing, but not impossible.

Buyers, it is no longer a buyers market, but the conditions remain good for the purchase of a new home, especially for first time buyers. A caution, interest rates are now creeping up, and traditional inventory is gradually being absorbed. The first time buyer credit is scheduled to expire in December, don’t wait too long.

Jim Little, Your Sun City REALTOR®
To search the MLS with NO Registration, click HERE