A Heated Phoenix Homes Market Is Causing Some Frustration

Over the last few months sale of homes in Phoenix have been brisk, but now that demand has come to head with a decreasing inventory.

Spring is usually a more busy time of year with a peak in sales sometime in June. Along with higher interest usually there is more inventory, but this year it's a little bit different, especially in Central Phoenix, but really everywhere, especially when it comes to the most in-demand homes: ready to move in properties that need little to no added work from the new buyers.

These types of homes have always been in demand. Most buyers don't want to do any work, can't do it or don't have the funds to do it so the homes that are fairly ready to move in sold briskly as long as they were priced for the market of course.

Now, as inventory overall hists a long time low of 3.8 months it's getting more difficult to find these homes or at least ones without competition from other buyers.

A case in point. For one client we have written 6 contracts in the last 4 weeks and several times these have been over asking price only to find out that others have done the same: creating a multiple offer situation or simply losing out to a buyer willing to pay more. Sometimes more then they should.

That can cause a lot of confusion and frustration especially when the media are still abuzz with bad news about the market. They - the media - should stop reading the wrong information and step into the streets and see what's truly going on in the market, or at lease stop talking about generalities because the numbers exist in medians and averages the buyers and sellers don't.

Active homes on the market are 36,000 compared to 43,500 last year and sales over the last 30 day this year 9,315 and 8,670 last year. Mind you the active inventory includes over priced and properties that don't match market needs, so the really inventory is much lower then the numbers portray.

This tight market is especially pronounced in the $150-$300,000 range in Central Phoenix where good homes stay on the market 2-7 days and often the agents don't have time to put up signs on the lawn before they are snatched up.

I do have to reiterate that no all homes are selling fast: it's either total fix ups selling a deep discount or move in ready homes - the middle is still slow.