Investors who had the foresight to take the intimidating plunge into the Arizona foreclosure/flip market have done all right – for themselves and the overall “health” of the Arizona real estate market. The value of investor flips has risen 26%! Foreclosures and short sales have dwindled dramatically. The driving force to rising home prices is certainly the lack of supply. This in turn may eventually encourage homeowners to begin selling again, albeit, for a small profit. Home ownership should never have become the proverbial “cash-cow”. It should have been viewed as forced savings by paying down a mortgage to gain equity with nominal value increases with time. Have we, as consumers, learned anything? Let’s hope so.
In today’s market, potential buyers may have to lay out considerable cash to obtain the home of their dreams simply because houses don’t always appraise at the current market value and sellers do not need to settle for the appraiser’s price. Mortgage lenders will not exceed the appraised value placed on a home when creating a home loan for a buyer. So, the buyer must make up the difference. Often, there are multiple bids or back up offers so the seller has the upper hand.
The latest trend in Arizona home sales is the rise in new home sales! This is great news for the construction industry – if only we could entice the construction workers to come back to Arizona! Completion of a new build is taking (on average) between 3 and 8 months and prices are increasing almost monthly. Our expertise is in new home sales although we have done a lot of business this year with investors and regular home sales. We are Buyers’brokers. Our main concern is finding the right home in the right location for all the amenities that are important to our clients. Please feel free to visit our website and do your own research. Please call us for the detailed information and to schedule an appointment.
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