The Real Estate Twins Team ABR, CRS, GRI,B.S. Marketing, Jennifer Hibbard & Christine Kinchen, ABR,CRS,GRI Phone (602) 908-5801 Fax (480) 907-1414 Mobile (602) 908-8946 Mobile (602) 908-5801
RE/MAX Achievers 6424 E. Greenway Parkway Scottsdale, AZ 85254
Jennifer Hibbard, REALTOR ® , ABR, GRI, B.S. Marketing and Christine L. Kinchen, PC, Associate Broker, REALTOR ®, ABR, CRS, GRI
Market Update
This has been a topic of much debate recently. Is the market cooling? Or is the bubble bursting in our local market?
Would you want to hear the truth about the current market and it's impact on buyers and sellers from your Realtor, or would you prefer to be led down a path that is focused on the recent past, and sure to lead to over-promising and under-performing?
Our current transitioning market is a function of it shifting from a seller's market, giving some power back to buyers, and going through a healthy period of getting to a more neutral market. The supply and demand shifted drastically in 2005. This isn't necessarily a cooling, as 4th quarter for real estate is typically slower, for obvious and not-so-obvious reasons. Obviously, the holidays impact people's moving plans. No-so-obviously, some people are waiting for the next tax year and new year's plans.
With real estate speculators exiting our local market, there has been a definite shift in the market. It is not uncommon for properties listed for sale to be on the market 30 or more days, as compared to 4-5 months ago, when a property would sell within an hour. Additionally, sellers who desire to sell their homes at the top of market, or higher, are realizing that the end buyer for their home is no longer the property-hungry spectators, but in reality owner-occupants. Many owner-occupant buyers are finding it increasingly difficult to afford the recently appreciated values, which on average increased about 55% from last year. Many investors and speculators are putting their recently purchased properties back on the market every day. Based on MLS data, we estimate there to be in excess of 1000 new properties coming on the market every week.
With an understanding of the recent and continuing shift in the local market, we feel the fiduciary obligation to make our sellers aware of this change. Also, if a seller refuses to understand or accept the market, they can be easily led astray. Some sellers may be looking for an agent that will tell them their property is worth more than it actually is, in the current market. Why would a seller want to hear this? Simply stated, it is music to their ears. They desire to hire representation based off of who claims to be able to get the most money for them. An agent who agrees to list a house at an unrealistic price or terms may just be trying to get the listing at all costs, even though the cost may be too high; essentially the seller's bottom line.
There are always important changes both locally and nationally happening in our real estate market. People need to know how this will affect them and their investments.
We'll strive to bring a true perspective to the market. Sometimes what is realistic is hard to hear.
MODERN BLURB:
This past year has seen a spike in the appreciation of architecturally unique homes. Not just $$ appreciation, but the public appreciation for these homes grew. While much of this $$ appreciation can be attributed to the market in general, the buyers for these homes usually have no intention of selling them in the future. So, in the coming year we expect to see fewer modern properties on the market, and an increase in the value of these homes in general. The supply and demand of the modern properties has created a modern seller's market that is sure to continue in 2006. In the beginning of the new year, we look forward to bringing you some of the best modern listings in the valley. Stay tuned and be sure to bookmark our site for future updates.
This has been a topic of much debate recently. Is the market cooling? Or is the bubble bursting in our local market?
