If you have been reading the newspapers recently, you have been treated to a variety of headlines and articles giving contrary messages. "Homeowners cash in, hope market cools off" and "Home prices, sales hit highs" were two of the more recent stories.
It turns out that the first article about homeowners cashing in was about one couple who sold their home at what they thought was the market maximum and were living in an apartment waiting for the next opportunity.
The second article was better and was from the Arizona Real Estate Center at ASU which tracks sales numbers and trends in the Phoenix residential real estate market. As a lot of us know by now, the real estate market is tapering off. There are more homes on the market and they are taking longer to sell than 6 months ago. Price reductions are becoming common as sellers realize that the bull market in homes is over.
Predictions from knowledgable experts still indicate that our housing prices will increase from 1% to 1.5 % per month for 2006. Not the blistering pace of 2005 but still nothing to be worried about.
The main factor in housing still appears to be interest rates. That determines how many families will be able to afford our higher priced homes. The average price for a valley home is about $260,000 presently with the figure bouncing around some from month to month.
So, don't panic despite the headlines. We had 200,000 people move to Arizona in 2005 according to state records. Sure we lost some too, but with that many people coming in, the demand for housing should be healthy.
You can always contact me directly for a detailed analysis of your home's value and trends in your neighborhood.
Richard
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Richard