All real estate is local…

The latest report from the National Association of Realtors showed a 27% drop in existing home sales in July versus June 2010.

This may sound like apocalyptic news on the surface.  And of course the newsmakers and we as the public often don’t do our due diligence and delve into stories deeper.  So we as Realtors have to sift through the details for the real truth behind the headlines.

When the media reports on home sales they are reporting on the nation as a whole.  But we all know the basic tenet of real estate…location, location, location.

Where as some parts of the country are just reaching the nadir of their market cycle there are some locations that have already weathered the brunt of the storm and are starting to sail to calmer waters.

The Phoenix/Scottsdale real estate market would be one of those aforementioned locations heading to calmer waters.

You see, we here in the Phoenix/Scottsdale area were, unfortunately, one of the 4 or 5 major areas on the forefront of the whole housing meltdown.  Las Vegas, Florida, and parts of California were some of the other areas that enjoyed over inflated housing prices through the boom only to see the whole house of cards come tumbling down.

The beginning of that downturn in the Phoenix/Scottsdale area can be traced almost to the day.  I remember it vividly, July 1, 2005.  Now, I’m not saying that when the whole meltdown began.  But I can remember a distinct change in the market surfacing at that point.  Homes began to sit on the market a bit longer.  Multiple offers and bidding wars began to vanish.  And sellers were, God forbid, having to reduce the price of their homes.

2006 moved along a bit slower. Not bad.  Just not the roaring days of ’03, ’04, and ’05.

Then 2007 came along. And the bottom started to fall out.  Sellers still thought they could get top dollar for their home.  Buyers weren’t buying it.  So we had an impasse.  And homes sat…and sat…and sat on the market.  And the rash of foreclosures started to happen.

2008 came in with a wimper, but we started to seem some steam pick up in the maket around March of that year.  Things looked like maybe, just maybe we had weathered the storm. Then wham, bam, thank you mam! Shearson Lehman collapsed and the whole global financial system was on the brink of collapse.

And the foreclosures kept a comin’.

The beginning of 2009 didn’t hold much promise.  But then a funny thing started happening.  Buyers started coming back into the market.  Namely investors.  They saw that what we had on our hands was a perfect storm of buying opportunities.  Low interest rates and falling home prices.  And they started to scoop up the values.  Unfortunately to the detriment of primary residence home buyers, who were being outbid by the investors.

Since about mid 2009 the Phoenix/Scottsdale real estate markets have stabilized.

The point of this post is this: We were ahead of most of the rest of the country in regards to this real estate cycle.  Unfortunately some markets are just hitting the point we were at in 2007.  As you can see, they have a ways to go before they reach the point we’re at now.

Like I said at the beginning, all real estate is local.  What is happening in one market is not necessarily happening in another market.  That’s why you need a Realtor to give you the real scoop on YOUR market.

For more information about Anthem, Phoenix, and Scottsdale AZ real estate please visit: http://www.ArizonaPremiereLiving.com

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