Good morning, looks like today will be a warm one! This is Gary Edelbrock, and I'm with Lee Amble, who has some information about local real estate prices. You'll find this of interest.
Urgent Money Alert!!
Phoenix Real Estate Prices Up 25%
Is Prescott Next?
By Lee Amble, Consultant/Realtor
The following are my thoughts as usual, but you do your own research if you are a buyer or seller. I’ve been talking with other Realtors, Lenders, Underwriters, Home Inspectors, Title Companies and, of course, buyers and sellers to get a local market feel for the present and the future. As you know from my previous readings, I do not put a lot of emphasis on the past, just a glance back as the rest of the graphics and stats are for historians and writers.
First, it’s really nice to see new homes and businesses being built, new businesses opening, more cars at local restaurants, spending more dollars in our community, full parking lots, and, yes, I even love to see the heavier traffic. It’s all about people feeling better, spending more money and moving on to the great step ahead. I know you all remember the opposite of the above for the past 5 to 7 years and feel good about our future, including the traffic; remember, the more traffic the more our economy will improve.
The Market Outlook
You can read headlines like:
- "Home Prices Gain in Most Major Cities"
- "Phoenix Medium Home Prices Up 25% over last year"
- "Builder Stock Market Values Better"
- "Home Building Permits Up"
Remember perception becomes reality!
Our local market has, in some cases, already increased 25% with many homes having been in the bidding process. Price ranges of $75,000 to $150,000 have already crept up. Some are in the $300,000 in certain areas following suit. It appears that it will continue, which means the days of the bottom market prices are long gone; a good feeling for all!
The vacant land and lot market is finally climbing out of the basement, as many builders are now getting increased activity in sales, as well as building inquiries for a new or remodeled home for the future. Don’t be misled as a very ample supply is available, however, I do feel their prices have also bottomed out.
The high price range of homes is stabilizing somewhat, but still will give you some excellent values There is generally an ample supply, but, also a dwindling supply as that market will also experience a comeback, but at a little slower pace.
Remember, I am not an expert on Commercial Real Estate, but I see buildings under construction, new business moving in, so I also believe their market is improving.
Some Interesting Facts:
- In the past 12 months, our area median price has increased 19% with our average price up 7.3%.. In some low and mid price range prices, we have had some homes increase as much as 25% to 30% with bidding. It appears there has been some bidding in the price range of $200,000 to $300,000, which remember, this usually happens if the price of the property has been presented at a fair price.
- It seems like some realtors and sellers have been overly aggressive in pricing, and, if they are, they do not get many lookers or offers.
- The best prices are usually gotten when you price a home as a good value because they always get more showings, which can create bidding. The buyers usually have the final say; they have the money and will bid both up and down.
- A National Association of Home Builders writing on new homes indicates the following:
(Local impacts are per 100 new homes ) In a typical area, $21.1 million in local income, $2.2 million in taxes, and other local Government Revenue and 324 local jobs. A lot can be said about the impact of new home building.
It will be a great year for buyers and sellers as the market has stabilized and is moving on and up.
A. Sellers should be getting more money and selling a home is taking less time. When they are also buying another home, they are just trading dollars. Whether they are buying up or down, there are great values or trading even while downsizing.
B. The future looks good for the buyers also, as more than likely prices will continue to rise at some rate, so waiting may cost more and, of course, if they are selling also, it will be trading dollars.
C. Interest rates more than likely have hit bottom, so borrowers may not want to wait.
D. Over time, buyers are usually better off buying in November-April and sellers are better off selling from May-October. I do believe the prices generally will continue to increase, but at what pace, I don’t know!! Please make your own decisions after some further research, but I truly believe that for the most part, times will be much better for most!
Happy 4Th Of July!!
"Buying And Selling A Home Is Easy, Doing It Right Is The Key!"
Lee Amble, Realtor/Consultant
National Realty of Prescott
222 W. Gurley St. – Suite 108
Prescott, Az. 86301
Lee’s cell: 928 533-4455
Jan’s cell: 928 533-4488