September 2013 Real Estate Market Report

Here are the numbers:

Available SFR

Metro Phoenix 14,527 +12%

Scottsdale +7%

MMR -3%

Tatum and Bell 0%

Metro Phoenix 9,057  -5%

Scottsdale -5% 

MMR -15%

Tatum and Bell -8%

 New Sales

 Metro Phoenix 5,302  -3%

 Closings

Remember that we expect to see average prices rise even if home values are not rising. This is due to less and less Distress sales being sold under market.

We are seeing the same pattern as last year except with a different story or reason. Last year we surged up in value with bidding wars, then sellers overpriced, then buyers pulled back, sellers started reducing, buyers pulled back more and prices dropped or went flat. They went flat until late spring. This is the overall market, it was different for each neighborhood. To find out about yours call or email me any time.

This year we had a similar event. The bounce happened late, like late April. Prices jumped strongly through April, May and June and then went flat again. We saw sellers overpricing, buyers pulling back and then price reductions.

Inventories grew by 1,497, the most since August 2010. That was when the affects of the expiring First Time Home Credit expired. This year we have Interest Rates messing with the market. Rates jumped over 1% or more in rate from around 3.5 to 4.75-5. Most importantly they jumped 26% or more from where they were.

What does this mean for buyers and sellers? Something different for everyone.

For sellers it means is you are looking to sell your home in the near term. You want to get your home on the market sooner rather than later and price your home appropriately. Then get your home sold for the highest point.

If your a home buyer, this reminds me of a story I heard about what a Grandfather said to his grandson on his death bed. Well it was part of a series of things he said. He said Dollar Cost Average. Well not in that way, he said “listen I have missed out on so many opportunities in my life. The reason was I was waiting for the screaming deal. I look back and realize had I just taken what was a good deal at the time, later on it would look like a screaming deal. Instead, I passed on many opportunities waiting for that home run. So don’t wait, Dollar Cost Average into the market and your investments. As you go, some may not seem like the best deal and others will be awesome, looking back many years from now they will all look awesome!”

The smart thing to do is find the right home for you and buy it. We just bought a home. I paid top price in a bidding war. My competition was living in a hotel, homeless and offered cash. I might have over paid for the home I don’t know for sure, but you know what… I don’t care. It was the best decision for my family at the time and the right decision. Many years from now, I will look back and say, “What a great deal that was to buy that home.”

So buyers if your looking to buy now, jump on the best opportunity today. Home sellers get your home sold. The market is hot, listen to it. Take a look at our email, I have the 7 Mistakes home sellers make.