“The pessimist sees the problems in every opportunity. Whereas the optimist sees the opportunity in every problem”
“Winston Churchill”
By Catherine Reagor and Ryan KonigThe Republic | azcentral.comMon Mar 25, 2013 11:40 AM
It’s a seller’s market in metro Phoenix real estate, with so few moderately priced houses on the market that typical buyers have to scramble to make a deal.
Last week, about 13,000 houses and condominiums across the region were listed for sale. In 2008, there were four times as many houses for sale in the Phoenix area, according to the Arizona Regional Multiple Listing Service.
Houses, particularly those priced below $200,000, are selling faster than they have since mid-2006, at the peak of the housing boom. The typical house now sells within 72 days, almost half the time it took five years ago.
Investors are motivated to buy because they can pay cash for affordable houses and turn them into profit-generating rentals. The improving economy has been a catalyst for traditional buyers as well, but they also are looking for bargains. The typical first-time buyer in metro Phoenix, who can’t afford to pay much more than $150,000, also wants to close a deal before interest rates rise.
The growing group of prospective buyers propelled the region’s median sales price up more than 34 percent in 2012. That price increase is expected to motivate more homeowners to put their homes up for sale because they are no longer underwater, but demand also is expected to rise.
For those in the market, the competition can be frustrating and time-consuming.
“There’s no doubt it’s a tough market for many buyers,” said Tom Ruff, real-estate analyst for the Information Market, a division of the regional multiple-listing service.
Multiple bids
Generally, the highest-priced houses for sale are in Scottsdale, Paradise Valley, some north-central Phoenix neighborhoods and the southeast Valley communities closer in. The least expensive houses can be found in parts of central and west Phoenix and the southwest Valley.
The limited supply of moderately priced houses is most out of whack with demand. Many first-time buyers, investors and others are seeking properties listed at or around $150,000. The median price of a house for sale in metro Phoenix during February was $185,000.
Melissa Jankovich has been trying to buy her first home for almost a year. The hairstylist wants to live in Tempe or central Phoenix near her job and friends. She’s been looking for a house that is priced at $175,000 or less and doesn’t need a lot of work.
“I have been outbid on so many houses I can’t remember them all,” Jankovich said. “I was discouraged last year. Now, I am a little numb to the process.”
Jankovich has been able to save more money for a down payment during the past year and now can afford a slightly higher-priced house. She also hopes there will soon be fewer investors to compete with.
“I keep hearing prices are getting too high for many investors, but so far they are still bidding on the houses I want,” Jankovich said.
Today, most of the houses priced below $200,000 are in the West Valley or much farther out in Pinal County communities.
Higher prices
As home prices rise, more sellers are expected to put their houses on the market, either when they no longer are underwater on their mortgages or when they believe they can make a good profit. But demand is projected to outstrip supply for quite some time.
“We still have a long-term supply shortage, with only about 50 percent of the active listings that we would expect to see in a normal market,” said Mike Orr, director of the Center for Real Estate Theory and Practice at Arizona State University’s W.P. Carey School of Business.
“Most homes priced reasonably below $500,000 continue to attract multiple offers in a short time. Sellers are firmly in control.”
In addition, housing analysts say some homeowners will wait another year or two to try to make more money on the sale of their house.
Why? The forecast calls for prices to keep climbing.
“As long as the supply is constrained for houses that buyers want, home prices will climb in the areas where those homes are located,” Orr said.
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Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial Investment Real Estate Broker in Arizona now for 15 years and I worked with banks and their commercial REO properties for 3 years. I am also a commercial and Landspecialist in Phoenix and a Landspecialist in Arizona.
1.
WHETHER YOU LEASE OR OWN
NOW IS THE TIME FOR YOU TO EXPAND, UPGRADE OR INVEST.
In my opinion we are at bottom of the cycle in Commercial Real Estate in Phoenix, so there is only one way and it’s called we are going up again and now is the time for you to expand, upgrade or invest in Commercial Properties in Phoenix. The prices on deals I may get you will not be around forever.
2.
IF YOU OR ANYBODY YOU KNOW IS IN TROUBLE WITH YOUR BUSINESS, AS MANY AMERICANS ARE IN THE MOMENT, AND ARE ABOUT TO LOSE YOUR COMMERCIAL PROPERTY, PLEASE CONTACT ME. IF YOUR BANK IS BEHAVING BADLY I MAY BE ABLE TO HELP YOU GET OUT OF SOME OR MAYBE A LOT OF FUTURE HEADACHES.
3.
WAITING TO SELL YOUR LAND ? TIMES CHANGE / IT’S TIME
We barely could give land away the last few years, but times are changing. Even in those meager years, I sold more land across the state than most other brokers. Before the real estate crash I was a land specialist in Arizona with millions of dollars of transactions, but then I had to change and also sell other commercial investment properties, which was fun, but I am a Commercial Landspecialist in Arizonal, a Commercial Land Specialist in Phoenix and love to sell land, one acre to thousands of acres.
Since I was a Land Specialist in Arizona and a Land Speciaost in Phoenix many of my clients, Sellers and Buyers remember me and now they are calling me again, so this is the time to get back into land and none of my clients, including future clients, will miss out on getting their best deal.
Also, if you are up-side down on your land, like many Americans, and the lender is giving you a hard time, now is the time to put your land on the market. Lenders are making deals now with short sales. I have been working with banks for many years – I learned how to work with them.
If you have any questions about the 1 to 3 above, about Commercial Investment Properties in Phoenix or Commercial Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion in Commercial Properties in Phoenix or Commercial Properties in Arizona with you.Obviously I am also in this to make money, but it could be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me 520-975-5207 (cell) 602-778-5110 (office direct).
Thank You
Walter
Walter Unger CCIM
Associate Broker
Kasten Long Commercial
2821 E. Camelback Road, Suite 600
Phoenix,AZ85016
Cell: 520-975-5207
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