By Melissa Wirkus
Arizona is one of the many housing markets across the United States
that is experiencing a slowdown, with a surplus of homes on the market
and prices
declining. Good news for buyers; bad news for sellers.
Metropolitan Phoenix and the surrounding “Valley” experienced
tremendous growth during the housing boom. This once deserted area saw
homes spring up at astounding rates.
Now that all of this tremendous growth has slowed, we are seeing a very
large supply of homes on the market, with very few buyers
in sight.
According to an article by Catherine Reagor and Ryan Konig of The Arizona
Republic, “Huge supply of houses keeps prices down,” looks
into the details behind Arizona’s feigning market.
The areas that accelerated so much during the boom, and saw their house
values appreciate overnight are now having second thoughts.
“People aren't bragging about how much their home appreciated
in a single month. There are no bidding wars for homes. No one is talking
about how they're going to spend their equity.”
“No, homeowners
today are watching every sale in their neighborhood, cringing if they
see ‘For Sale’ signs lingering too long and losing their
tempers when neighbors drop prices.”
And there is definitely reason for these sentiments, since most areas
are seeing a glut of homes on the market that are taking months longer
to sell.
“Housing prices dipped in more than half of all ZIP codes in metropolitan
Phoenix during July and August. Several areas saw significant monthly
drops of 10 percent or more.”
Individuals who are looking to sell their home in certain areas of Arizona
are probably going to run into increased competition from home builders
who are offering exciting incentives to lure-in buyers.
Experts are saying that homeowners
should probably put off on selling their home if it isnot an absolute
necessity, or else they could face a lot of disappointment and frustration.
“‘Most people who bought on the fringes last year are likely
going to have to hold on for at least three years or sell for a loss,’
said real estate
agent Margie O'Campo de Castillo of Phoenix-based Arizona Dream Realty.”
But there is not all bad news; there are some areas in Arizona that
are still holding on to their prices or even appreciating a bit.
“Prices in some areas have dipped more than others. And while
most parts of the Valley saw their prices peak this summer, values in
some areas are still climbing. Prices in Laveen, ZIP code 85043, and
Glendale's ZIP 85302 peaked in August. In the central Phoenix ZIP 85006,
housing prices hit a high during August. In Phoenix's 85018 ZIP, home
prices dipped in May, June and July, then rebounded in August.”
So it seems as though things are going to slowly correct themselves
around these areas.
Only time will tell if things will get any worse before they get better.