Arizona Real Estate Market Update

2007-11-15T15:48:00.000-08:00

After reading this blog, you will have better understanding of how the current Arizona real estate market is compares to other states. As you may be aware that real estate is regional. Thus, the local employment, population, and housing supply play important roles. With that said, lets begin.

FORECLOSURE PRESENCE

As of June, 2007, the state of Arizona has 13,821 Foreclosures (128% change from 1st half of 2006) and 10,100 in pre-foreclosure. Arizona ranks 8th on the Nations top 10 list, 1 out of 92 homes filing for foreclosure.

MARKET CYCLES

A normal Arizona real estate market has about 6 months supply or 24,000 listings & 4,000 sales. After the stock market crash in 2002, investors started to poor their money into the Arizona real estate market. Rapid change started in the 3rd quarter 2004 where investors JUMPED into Arizona from Las Vegas. Currently, Arizona market has about 9-12 months supply or 57,700 listings and 2,400 sales. Experts projected that Arizona real estate market would be back to normal in 2009.

AREAS OF CONCERN CURRENTLY

West Valley, AZ

Mostly new construction in the outlaying areas of the city, areas with heavy investor speculation. Cities such as, Surprise, Buckeye, Goodyear, Laveen, and Avondale. City of Surprise has highest foreclosure rate in Maricopa County.

- Foreclosures = 2.2%
- Delinquencies = 7.0%

East Valley, AZ
Mid-High rise condos, new construction , outlaying areas of the city. Areas with heavy investor speculation, such as:
– Queen Creek
– Maricopa
– South Chandler

Queen Creek and Maricopa have the fastest rate of declining values in the East Valley.

AREAS OF STABILITY PRESENTLY

West Valley, AZ

Established inner city areas that were not as attractive to the Investors. Areas such as:

a) South Central Phoenix where housing is affordable.

- Median Sales Price=$190,000
- Month Supply=6 months

b) The up and coming tourist area with new sports stadiums such as Glendale.

- Median Sales Price=$250,000
- Month Supply=8 months

c) Established Retirement community of Sun City
- Median Sales Price=$205,000
- Month Supply= 6 months

East Valley, AZ

a) Scottsdale, an established highly sought after market.
Median Price:=$530,000 to $550,000
Supply:=8 month supply
Upper End homes ($750,000+)= 6-7 month supply

b) Tempe , an established college town. Area is landlocked, so no new construction .
Median Price:=$255-275 for 2 years
Supply= 5 months

c) Mesa, an established family community. Close vicinity to most major freeways.
Median Price=$250,000
Supply=8 months

Well, are there any upsides to the Arizona real esate market? Absolutely!

POSITIVE MARKET INFLUENCES FOR ARIZONA

1) Unemployment rate is low.
– US rate 4.6%
– AZ rate 3.5% (5, 000 new jobs were created in 10/2007 (AZ Dept of Economic Security)
– 33% of AZ workforce is in construction field compared to 50% a decade ago.

2) Growing Population.
- 20% increase from 2000 to 2006
– 5,130,632 in 2000 to 6,166,318 in 2006

3) Large areas of homes with stable values
– Inner City areas with very little land to build on.
– Older established neighborhoods

WHAT DOES THIS MARKET MEAN TO YOU AS BUYERS, INVESTORS, RELOCATORS, AND SELLERS IN ARIZONA?

If You Are A Buyer/Investors/Relocators.

This is a true buyer's market. You cannot find a better "buyer's market" than this. There are plenty of options from new homes to resale homes. Currently, Arizona Regional MLS has over 57,800+ resale homes to choose. Many of these homes are loaded with upgrades and the sellers are offering thousands in incentives at bargan prices. Many times, you can get the sellers to pay for your closing costs, throw in appliances, furniture, and one year home warranty that cover your major ticket items, such as A/C, water heater, diswashers, plumbing, electrical, and pool.

If You Are A Seller.

If you are a seller, it is not so good of a time, especially, if you have purchased you home in 2005 at $0 down and currently have little or no equity built up in your home, the best way is to hold on to it for a while if you can. If you cannot, bite the bullet and let it go, and move on.

If you have purchased your home before 2004 and have decent equity built up in your home, be realistic with your asking price and don't try to fish as this is NOT the market to do it. Addiontally, make your home so irristable. You will have to spend some money on cosmetic upgrades to make your home stand out from the crowds. Such as, new interior & exterior paint, touch up the landscape, replace or remove furnitures, replace/clean the carpet, clean out the garage, fix the roof, etc.

Was this information helpful? Give me feedback, both good and bad. To learn more about my company, visit our website at http://www.nohardsalerealty.com/.

My company offer a one-stop shop includes, real estate, loans, escrow/title, inspections, repairs, cleaning, moving, and landscaping services, etc. Thank you for reading my blog.

Regards,

Sara McLlenan, Designated Broker/Founder

Bachelor of Science in Marketing

Arizona Real Estate Relocation Specialist

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