If you planning to purchase a home before the $8,000 tax credit deadline hits, or you’ve had your eye on the luxury market, you need to know where you stand as you craft your offer to purchase real estate in Scottsdale, or any of the surrounding cities.
If you are looking for a home priced under $350,000, know that you are not alone, and the pickings are thin. Multiple offers and competing with cash buyers are just two of the challenges, particularly with foreclosures. The good news is that I’m seeing more listings from primary home owners who are motivated to sell their homes and are pricing them to compete with the bank. And when these well cared for and lived-in homes are priced aggressively, they do sell in very short periods of time.
We are no longer in a real estate market where a buyer can assume that they will find the house of their dreams in their price range, located in just the perfect area. Not when there’s less than a 3-4 month supply of homes in these most affordable price ranges. It’s tough. Home buyers quickly get an extreme appreciation of just how competitive the market is right now.
For those looking in the price range of $350-500K, the market is considered “balanced”. About the right number of homes, when balanced with the number of home buyers.
Once you start looking above the $500K range, and especially above $800K, you can see that there is a glut of inventory. Home sellers in this price range have more staying power, and unless they are truly motivated, have not reduced their prices to what the few luxury home buyers are willing to pay. This is where I think we will see the biggest price changes in the next 12-18 months. At least that’s my hope. Seven years of inventory is unheard of, yet that is where the market over $3M sits.
If you are a home buyer, before you do anything, get your financing in order. So much has changed, and even well-qualified buyers are jumping through hoops to provide all the documentation that is needed now. Then, roll up your sleeves and get ready to move quickly. That is what it takes! Time really is of the essence.
And, if you are home seller, with a home that should be priced $350K or less, know that you have some power in the home sale negotiation again. Clean it up, price it well, and make it easy to show!
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