It’s now official ~ the metro Phoenix area has become a true Buyer’s market. Just a couple of years ago there were less than 10,000 total Active listings for sale in the Multiple Listing Service (MLS) for the entire Valley of the Sun and surrounding areas/towns. Today there are over 45,000! So, what’s going on? A number of factors have contributed to this incredible shift, such as:

• Although they are historically still extremely low, interest rates have risen slightly. The net effect, however, is that a percentage of marginal Buyers are now unable to secure an affordable mortgage loan. There are also many homeowners who purchased during the past 2-3 years with a marginal adjustable rate mortgage (ARM) loan - with stretched ratios - that are coming due; given the currently higher interest rates, those folks simply cannot afford to refinance. Thus, many of them are being forced to sell their homes in order to lighten their debt load.
• The influx of out-of-town and out-of-state real estate investors has stopped dead, with vast numbers of them now trying to sell their property. This one factor alone is believed by many professionals and experts to be the single largest contributor to the huge excess inventory of houses on the market.
• Other market areas that have formerly been in steep property value appreciation modes, e.g., California, Nevada, Florida, etc., are also experiencing a market slowdown. The net result for the Phoenix area is that we now have fewer and fewer Buyers from those states who are flipping huge equity/profit and thus not bringing their investment money into Arizona.
• Prices of homes in the Phoenix area have skyrocketed in most areas, resulting in the average and median price houses being less and less affordable ~ especially to many first-time home Buyers. That’s also another deterrent to outside investors.
• The overall national economy has arguably moved into a slower paced, perhaps even recessionary mode. The “feeding frenzy” over residential real estate has come to a rather abrupt end. As a result, some sources believe there are less relocations taking place by corporate executives and retirees.
• The extremely high demand that we had heretofore has been replaced by a record-breaking supply of not only resale homes, but also of record numbers of spec homes and new subdivisions/builders. In past years, whereas Buyers had limited choices of properties, they now have an enormous selection. Unfortunately, too many choices can also often lead to indecision or procrastination. And too much over-building by residential contractors can lead to price reductions.

So if you’re in the market to buy a home, the services of an experienced, professional, dedicated REALTOR® as your exclusive Buyer Broker is more important than ever. We have made extreme changes in our operations to insure that our Buyer clients have every advantage necessary to find their dream home, negotiate the best deal, and forge your way thru the sometimes troublesome and difficult road to a successful close of escrow.

Whether you're moving in, out, up or down, we are here to help you find just the right home. You'll be treated like royalty, with service beyond compare. Check out our Buyer Services right now, or better yet, call or email us today to find out how we can help make your dreams a reality. Remember, it’s only a dream until you believe. Do you believe?