Change in Real Estate is Coming!

Phoenix Real Estate Market Changes

I just read a great post on Jay Thompson’s blog (if you have not read it check it out – www.phoenixrealtestateguy.com) and it got me thinking!  Nary a minute goes by on a typical mortgage business day without the subject of how low our inventory is being spoken, thought or read.  Buyers, lenders and real estate pro’s alike are faced with new challenges related to having far fewer homes for sale today than yesteryear.

Its is harder to…wait a minute – It’s a HECK of a lot harder to get a purchase contract accepted for a financed buyer.  Why?  Stories of just listed properties getting 20+ offers of which many/most are cash are commonplace in today’s Arizona Real Estate Market.   From inside conversations with the Phoenix areas best and highest producing Real Estate agents I have heard first hand that cash does not always equal king.  However, cash offers do make it tougher for mortgaged buyers to get in.  (buyers – if you fail, try try again – you will get an offer accepted just stick with it.)

Now insert here a little something called human nature.  Sometimes the nature of our beast comes in the form of finding fault with whatever circumstances exists.  When our market had too many homes and the oversupply was pushing prices down everyone was frustrated and wanted lower inventory and to push prices upward.  Everyone wanted to see our market heal and get back to normal.

Fast forward to today.  The Arizona Real Estate market is experiencing a shortage of homes on the market for sale and many believe our sand coated residential world is on the mend.  The result – high demand and low supply is pressuring prices upward.  Is it painful/challenging?  Yes, but what kind of change isn’t painful?  Many cliche’s were born from situations like this – “No Pain No Gain” or “No Guts No Glory” or “Pain is Just Low Priced Homes Leaving the Market (my own twist on that one) or how about “Don’t Look a Gift Horse in the Mouth.”  Point is, there is and never was any way to transition from the market we were in here in Phoenix Arizona to the market we all wanted to be in (which is hopefully where we are going).  Yet, there are no shortage of complaints right now despite the possible overall positive impact to our housing market.

I am not saying that the home buyer that gets shot down time and time again should Pollyanna it up and say “eh, it okay our market is healing I am okay with rejection.”  However, I do think it’s fair to observe what’s happening and understand we might just be getting what we have been asking for.  Short term = tough to swallow.  Long term = maybe just what the Real Estate Doctor ordered.

By Jeremy House

 

Comments

  1. Dude, did you really use the word “polyanna”?? LOL In case you didn’t know, Jay Thompson suffered a major heart attack a couple of days ago, and he’s still in the hospital. I understand he’s doing well, all things considered, but thought you’d want to know. Also, Jay recently accepted a position with Zillow – that shocked the real estate community. Go figure…

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