Sorry didn't realize you have to sign in to see this. Here is the article. Does anyone think this is still a buyer's market? The answer to the title question is yes. And of course that can present a problem for those who think it is and those of us that these buyers are looking to for assistance. I have found myself telling potential clients on a regular basis that the market has shifted drastically over the past few months and in many segments this is most definitely a seller's market. The Phoenix metro area saw prices increase in 2011. Word has gotten out (obviously not to everyone) and all the fence sitters and investors are clamoring to get a piece of the pie now that they realize that the bottom is past us. Can anyone say with 100% certainty that the bottom is past. Of course not. There are many factors that can affect the market, including unforeseen national or global catastrophes. But barring something like that, all indications are that 2012 will be another up year. More than 50% of sales in the Phoenix market are occuring between $50K and $150K. These are prices that were absolutely unheard of in the crazy peak years of 2004-2005. Despite the disparity in prices, the atmosphere in the market is much like it was during the peak times. Most properties in this price range are selling with multiple offers, most above list price and many the first day. I got two offers accepted this week, and it feels like a miracle happened. One of those has put in more than a dozen strong offers before this one was accepted. The other, while luckily getting the first one offered on, quickly realized that the information I supplied in our initial meeting was spot on. Before this offer, there were a few properties that they were interested in, but never got to offer on because they were off the market in a day. Some clients have busy schedules and can't get out to look immediately. I have another client who has also put in more than a dozen different offers only to be rejected. One of those last week was for a property that actually recieved 60 (yes that is sixty) offers. Doesn't sound like a buyers market to me. A big issue with this type of market is that offers are competing in a small range. Appraisals are based off closed listings, and while adjustments can be made for market conditions, they don't provide a wide berth beyond the hard statistics. Cash buyers are ruling the day because they aren't worrying about whether the property will appraise. The upper end of the market, price wise, isn't feeling this yet, as there is still a large amount of higher end inventory. Still overall, we should see continuing increases this year. Adding to the demand are people who lost their homes in the early years of the downturn who may now be eligible to get new loans. It continues to get interesting. Adam Tarr PC
