Is it a buyer’s market today in Phoenix?
As experts in the Phoenix real estate market, we get asked this question a lot.
The answer isn’t as simple as yes or no, however home sellers have the advantage in most cases.
First off, it really depends on the property type and location.
Single-family homes in great locations that are priced well have been flying off the shelves. That includes a low number of days on market, and sometimes multiple offers. There’s a lot of demand in the market for certain areas, while others can seem like ghost towns. Homes under $250,000 are in the greatest demand with very low inventory.
Buyers are often looking for the same thing – good neighborhoods, access to transportation, shopping, good schools, close to work, etc. Properties that deliver all these are definitely a hot commodity. Sellers with a highly desirable property are in control of the market.
But for condos and townhouses – especially those a little off the beaten path, or with some funky features – it can be quite a different story. Prices were slower to rise in certain areas of Phoenix, but seem to be rebounding as the rental market increases.
Investment properties are in demand. The large amounts of cash flooding in to invest in US real estate have impacted the Mesa market in unique ways.
Overall, those people in a position to pay cash for properties have been picking up the best deals in the marketplace.
Lots of sellers are trying out speculative prices just to see if anyone bites, but most investors are walking away from deals that don’t pencil out. For investors, the numbers need to make sense. Emotions don’t play into the decision, unlike with a home buyer looking to live in the home.
Financing can be a major obstacle for buyers. Banks are stricter now, which is a good thing, requiring lots of money down and even changing their terms at the last minute. It’s not uncommon for approved buyers to get their loans pulled right before closing escrow, although it’s getting better than it was just a couple of years ago.
Overall the markets remain incredibly polarized – there is a lot of action at the very top and the very bottom, with the biggest challenges in the middle.
Sound confusing? It is. But We Can Help.
There’s a lot of shakeup in the US economy still taking place, and the markets are moving fast in lots of directions at once.
We’re investing in Phoenix because we believe in the community and the people here.
If you need to sell a property near Phoenix, we can help you.
We buy properties like yours from people who need to sell fast.