Phoenix Market Update - March 2006

If the number of headlines regarding real estate is any indication, it has been an active several months.

But just reading the various headlines could leave one awfully confused. From "Phoenix a buyer's market" to "Don't fret drop in new-home permits" to reports of the average home price still going up, headlines tell a confusing tale.

Here is what is happening in the Phoenix home real estate market from where I sit.

Yes, there are more homes on the market than in the last 12 months. Yes, new home builders are offering an increasing number of incentives to lure buyers for their existing homes (inventory homes).

But, the average price of a resale home is still increasing, and while days on the market to sell a home are up over last year, they still are reasonable (less than 60 days).

Overall, we have slowed down but it is still fundamentally a robust real estate market. Why? primarily because we have 100,000 people moving to Arizona each year, the bulk of whom come to the Valley of the Sun.

The only really valid comparsion for this year's sales figures is from TWO years ago. Last year was an exception. That is behind us now. But every indication I can see is that we have just returned to the way things were in 2004 and earlier - a slow steady increase in home values.

Why are there so many "Price Reduced" signs on homes you ask? More than a few sellers are stuck in last year's market. They begin a listing with an unreal price and, when they get no traffic and no offers, they bite the bullet and reduce the price.

This too shall pass.

Call me for additional information or for a market analysis for your home.

Richard
602-370-1450 cell