Phoenix Real Estate Market

It's Been A Crazy Market Here

In The Phoenix Area For The Past Two Years

Let me share with you my personal experiences...

In November of 2005 our real estate market took a sudden turn; one that we hadn't seen in quite a few years.

Prior to November, it was a Buyer's market. Buyer's were under pressure to preview new listings immediately, as soon as they become posted by the Listing Agent. Scottsdale real estate and the surrounding Phoenix areas, were sizzling HOT! Buyer's found themselves racing to properties to preview them and if it met their expectations, write an offer immediately or loose the "opportunity" to purchase once again, as the prices continued to rise! Having a aggressive Real Estate Agent was very important in this fast moving market. Every new listing was priced a tad higher than the last and Seller's were receiving multiple offers at that! Many times, the offers were over the asking price. It was not uncommon for a Listing Agent to post the new listing and in the comment area of the listing, advise Buyer's Agents and Buyer's that "all offers will be reviewed on ..........at 5:00pm." Therefore, being the first offer was not a benefit since they chose to review all of them, at the same time, maybe 3 days later. It became a bidding war. There was just not enough real estate available to go around for all of the Buyer's interested in entering the marketplace; moving up to a larger home, or down as their families scaled down with children now in college, etc.

All of a sudden, in November of 2005, the real estate market in the Phoenix area took a serious turn. Prices had become so inflated, properties began to sit and Buyer's began to wait; wondering what was in store for the future. Two years later we find those who purchased during this market frenzie are finding themselves needing to hold on to their real estate longer than perhaps anticipated. No more "flipping" of homes (buying/selling quickly for a fast buck). There is very little, if any, equity. They cannot take out second mortgages to assist with their debts and their credit card debts have increased. Perhaps some have had the misfortune of loosing their jobs to boot! Foreclosure and bankruptcy is in the near future for those unfortunate families.

I can remember a specific incident where my Buyer was "lucky" in that our offer was accepted after being shown to many the first day. One very interested party, now extremely disappointed that they were not the "chosen Buyer" actually showed up at the Sellers door step without their Agent, letter in their hand, in tears, begging to explore any option as to how they could perhaps still be the one selected by the Seller to purchase the property. Needless to say, our offer had been accepted and we were well on our way....some win while others loose.

In summary, if you or someone you know is interested in Buying real estate in the Scottsdale/Phoenix areas, now is the time. There are many desperate sellers who need to unload their property just to save their credit.

Real estate is like riding a roller coaster.....it's up then down and up again. Hold on and enjoy the ride if you can!