The numbers continue to fall, inventory that is, the real estate inventory has never been so low. Typically, that means when inventory is low, there would be a higher demand in housing, leading to significant price increase, correct? For those including myself who took Economics in college would know that, that’s is standard. Low on supply, high on demand leading to higher prices.
Here in the Phoenix valley metro, it’s not necessarily the case. The last several years, the real estate market took a horrific twist affecting buyers, lenders, and real estate agents with short sales. Right now, many potential home buyers searching for a home, have remained ineligible due to the short sales they endured in the past year or two. Plus, those who fell into a Foreclosure, Deed-in-Lieu, or Bankruptcy, they too will have a wait for at least 3 years to regain homeownership if they are looking to get another mortgage. Ouch!!! As of today, most of the home buyers are in luck, those cash buyers.
Approximate Inventory from April 2011 to Today in key communities:
Scottsdale Real Estate:
April 2011: Approximately 7,000 actives - Cromford Report
Today’s Date: 2,055 active listings - Arizona Regional Multiple Listing Service (ARMLS)
Phoenix Real Estate:
April 2011: Approximately 2,500 actives - Cromford Report
Today’s Date: 2,158 active listings - Arizona Regional Multiple Listing Service (ARMLS)
Fountain Hills Real Estate:
April 2011: Approximately 320 actives - Cromford Report
Today’s Date: 250 active listings - Arizona Regional Multiple Listing Service (ARMLS)
Paradise Valley Real Estate:
April 2011: Approximately 475 actives - Cromford Report
Today’s Date: 294 active listings - Arizona Regional Multiple Listing Service (ARMLS)
These numbers do not include most newly built spec homes. Due to the amount of short sales, foreclosures, etc, it does not appear the average home seller is looking to sell their home as a normal sale, and the eligibility procedures for mortgages set forth on those who fell into financial hardship in recent years, homeowners are reluctant to place their homes on the market.
If you are looking to place your on the market or looking to buy, my team and I will strive to assist you of overcoming the loopholes of buying and selling real estate. If you are in an unfortunate situation and need to short sale your home, my team and I will put you at ease through the short sale process and will be glad to work you and the banks to list your home. I am your agent for all your real estate needs.