Phoenix Metro & East Valley Market Update 1/23/08

January 25th, 2008 — Market Update

We currently have 20.4 months worth of inventory in

Active Listings in MLS. 

(This is an increase over last week’s report of 17.4 months worth of inventory. This monthly inventory may seem high this week because the “Sold” date range includes the last two weeks of the year, which are traditionally very slow for closings) 

Arizona Regional MLS Inventory Data

(All dwelling types)

55,071

 Active Listings Up 883 from last week

4,579

 Pending Up 439 from last week

2,694

 Sold in Past 30 Days Down 426 from last week

        Sold dates range is 12/23/2007 – 01/23/08
Total Listings as of 01/23/08
Information reliable but not guaranteed.



The Southeast Valley currently has 17.8 months worth of inventory

Active Listings in MLS.

(This is an increase over last week’s report of 14.6 months worth of inventory. This monthly inventory may seem high this week because the “Sold” date range includes the last two weeks of the year, which are traditionally very slow for closings) 

Southeast Valley* MLS Inventory Data

(All dwelling types)

19,530

 Active Listings Up 696 from last week

1,832

 Pending Up 197 from last week

1,096

 Sold in Past 30 Days Down 317 from last week

        *Southeast Valley cities include Ahwatukee, Apache Junction, Chandler, Gilbert, Guadalupe, Mesa, Queen Creek, Scottsdale, Sun Lakes and Tempe

  Sold dates range is 12/23/2007 – 01/23/08
Total Listings as of 01/23/08
Information reliable but not guaranteed..

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Will Canadians Save The Phoenix Real Estate Market?

January 25th, 2008 — Real Estate Chatter

Canadian buyers have been contacting me every week to get the low down on our market and are scheduling visits to purchase vacation homes and investment properties. I am currently working with many Canadian buyers who have visited or are planning to visit in the next few months.

Why?

  • The weakening US Dollar (For the first time since the 70’s, we have parity with the Canadian dollar).
  • Word on the street in Canada is the US is headed for recession and you can pick up a great deal on a home that is sure to appreciate in the future.
  • A record inventory of value-priced homes for sale in the Phoenix Metro area.
  • The Canadian housing market has experienced double digit appreciation recently making homes less affordable, but on the plus side, giving Canadians access to equity lines of credit one their homes allowing for investment funds.
  • Combined with great airfare rates from Canada to Phoenix, the word is spreading throughout Canada that Arizona is the place to buy.
  • Last, but not least…Our weather (of course)!

Developers in the Phoenix metro area are hosting seminars all over Canada promoting their communities. Canadians are wisely contacting Realtors in the valley to get the skinny on these hyped communities which aren’t always the best values contrary to what Developers are reporting.

Sellers here welcome the opportunity for ANYONE to look at their homes in today’s market and ask me “Exactly what are Canadians looking for in a home?”

My buyers from Canada are looking for a wide range of homes styles & price ranges. Obviously, like anyone, they are looking for a “great buy”. However, most are looking for amenities in a home that says “Arizona resort property”. A home they could rent out part of the year and use as a vacation home for up to 6 months a year. This means most are looking for a home with a private pool and close to a golf course with a golf course view being preferable.

Homes in Queen Creek and Maricopa are of particular interest to many of our Northern neighbors for the values that can be had in those communities. The only concerns with these communities are the lack of shopping and amenities including restaurants and other entertainment venues found in some of the slightly higher priced communities. Chandler’s Ocotillo area as well as the Ahwatukee Foothills are prime locations for these buyers.

Some are partnering with other Canadian buyers to purchase a high end property to use similar to a time-share, each buyer using the property for a specific period of time. This is a great investment strategy. They will all profit from our market when it turns around and, at the same time, have a resort property to use as they please. These buyers are focusing on Scottsdale, Paradise Valley & Fountain Hills properties with fabulous view lots and all the bells and whistles of an elite property priced at 1 Million plus.

There are also those who are looking for condos and townhomes that offer the freedom of no exterior upkeep as well as great locations close to amenities of dining, shopping & entertainment.

The Million Dollar question is “Will Canadian Buyers save our Real Estate Market?”  Well, with over 55,000 homes currently active on the Arizona Regional MLS, the answer is “not likely”.   But a Buyer is a Buyer and the only way we’re going to correct our market is to reduce our inventory….one house at a time.  So I say to buyers from all over the world, “Welcome to Arizona”!

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