It was mentioned at the Real Estate Industry Partners Conference last week that the population of Maricopa County, Arizona is expected to increase by 1 million people over the next 10 years.
24% of homes Sell Quickly
Also mentioned at the conference that of the homes sold, 24% of homes sold within 30 days.
Homes are selling and many are selling quickly. If your agent says your home isn’t selling because “nothing is selling,” he’s wrong.
{ 10 comments… read them below or add one }
KG 09.16.07 at 11:54 am
Maybe we’ll blow through all the inventory by then.
John L. Wake - Realtor 09.16.07 at 12:05 pm
The inventory is out of sight but that doesn’t mean you can’t get your home sold in 30 days or less. It’s a matter of your home’s price in relation to its condition, location and competition. This isn’t rocket science.
Realtor Russell Shaw likes to say he doesn’t know at what price your home will sell but we can find out at what price it won’t sell… and then reduce the price until you find the highest price at which it will sell.
Paul Cooper 09.16.07 at 4:44 pm
Let’s not forget that almost 50% of current inventory are unoccupied homes. So certainly we already have plenty of homes to house all that future population increase.
John L. Wake - Realtor 09.16.07 at 4:59 pm
Now come on Paul, the current inventory won’t take care of “all” of it… just 8 or 9 years.
Seriously, we have about an extra half-year’s supply of homes right now. It could take a few years to work through it but not likely 10 years.
Ken44 09.16.07 at 5:56 pm
Imo, the housing market seems all but dead. However, the market pyschology may change once the Feds begin cutting rates. I`m sure there are plenty of potential buyers on the sidelines waiting for the right time to jump in.
Paul Cooper 09.17.07 at 1:40 am
Market psychology will only change when current salaries can afford prices of houses with 30 year fixed mortgages. And we are long way from that. 2008 will be a much worse year for Phoenix area than 2007 in terms of price depreciation. Many people would wish they sold at 2007 prices when 2008 is all said and done IMO.
John L. Wake - Realtor 09.17.07 at 3:00 am
“2008 will be a much worse year for Phoenix area than 2007 in terms of price depreciation.”
It is, of course, a very real possibility that 2008 will be worse than 2007.
Cbass 09.17.07 at 5:00 pm
I do not know how the Fed cutting rates will help potential buyers. Here is a graph to illistrate my point.
library.hsh.com/?row_id=90
Are not most loans made today tied to the LIBOR anyway?
Also a quarter point reduction in the Fed Funds Rate does nothing to erase the changes in the tightened lending standards that are now being imposed on borrowers.
Why does everyone think this will be our salvation? I just don’t get it.
In addition to these other problems, this will cause the dollar to drop further against other major currencies. Which in turn will cause inflation, which I hear is a bad thing!
I guess I should put some money in FOREX and bet on the Euro.
Ken44 09.18.07 at 4:30 pm
Humm…
“Lawmakers also passed an amendment to the bill offered by Frank that would raise the agency’s loan limit from its current $417,000 to as much as $729,750…. ”
http://www.marketwatch.com/news/story/house-passes-bill-aimed-helping/story.aspx?guid=%7BF2CD6FF8-6937-4ABB-BE4D-91DFE996EDBC%7D
TimB 09.19.07 at 11:08 am
I see the inventory levels staying significantly above average for quite some time for the simple reason that so many houses for sale are located in outlying areas … Queen Creek, Florence, Coolidge, Maricopa, Buckeye, Surprise. These locations are not that attractive to buyers at “normal” prices, never mind the inflated prices of the last couple years. They will sell off very slowly in my opinion.