Phoenix, Arizona Valley Market Expected To Improve With Lower Rates and Better Deals!

An article in our local paper supported my view about what 2008 holds for buyers and sellers in Mesa, Gilbert, Scottsdale, Chandler, Gold Canyon, Arizona. In January, 2005 we had less than 7,000 active listings in our MLS. Of course that included all properties such as mobile, manufactured homes, townhomes, condos, single family not only in Maricopa and Pinal County, but from cities across Arizona that wanted to market their listings in this MLS. We all need to forget about the negative press! They want to make news!

On January 11, we had 53,904 active listings. While builders still continue to build, they are selling off their inventory homes - and our MLS doesn't typically include those.

There are signs that our housing market is on the upswing. The past two years, buyers have been waiting, sellers have resisted listings their homes at a marketable price, and interest rates and mortgages have been a challenge. Notice the comparisons below:

• Chandler Resales in 2006: 4,625
• Chandler Resales in 2007: 3,675

• Mesa Resales in 2006: 7,600
• Mesa Resales in 2007: 5,605

• Gilbert Resales in 2007: 3,730
• Gilbert Resales in 2007: 3,205

• Valley Resales in 2006: 67,035
• Valley Resales in 2007: 50,975

Not since 1997 were sales as low as in December 2007. 2008 is predicted to be a better year!

There are still thousands of people moving to Arizona helping to chip away the inventory of homes - resale and new. Certain areas as well as homes located on golf courses and lakes seem to be holding values better. Sellers who purchased several years ago - even in 2002-2004 - have become more realistic even though they may lose 10-15% in value from the top of the market. They will still be ahead of the game.

I spoke with one of my former buyers who is thinking of selling her home and buying another. I recommended she price her home with an appreciation of 7-15% from when she purchased it in 2004. That's not a bad appreciation rate.

As most of us know, mortgage interest rates recently experienced their biggest two-week decline since May 1995!

Definitely not the time for buying to flip, but for those who plan to live in their home for a few years - absolutely. Typically homeowners move in 3-5 years..........the longer the better, at least in this market. I've owned property in this area since 1981, and I still own them! The prices continue to go up because people love Arizona!

Buyers who are waiting for the market to drop further might ask themselves: "how do you know you haven't waited too long?" Sellers are willing to negotiate, there's a huge selection of homes and interest rates are near historic lows.

Read the complete story from the East Valley Tribune:

For more information on our market, just give me a call at: 480.216-3334 or email me at: Teri@TeriEllis.com. To visit my website, click on http://www.teriellis.com/