Jeff and Lisa Cameron 480-502-7699
Phoenix and Scottsdale Real Estate Market Report May 2012
It’s 2005 All Over Again and Let Me Tell You Why
4 Reasons the Real Estate Market will Continue to Surge in 2012 and for the coming year or 2.
Jeff Cameron with The Cameron Team coming to you from McDowell Mountain Ranch in Scottsdale, AZ. The Real Estate Market is going Crazy as there are 10 buyers for every properly priced home for sale today. This is causing bidding wars at a level even I didn’t expect. This time around it is important to look at the facts and understand why this will continue into the future.
Here are my 4 Reasons the Real Estate Market is on FIRE and will continue to Rise
1. There is no Inventory, both Resale Homes for Sale and New Homes For Sale
2. Jobs, Jobs, Jobs.
3. It may be acting like 2005, but Its Different this time.
4. Consumer Sentiment is rising.
You have heard me report that inventory has been dropping for years. Today, there are 9,998 homes for sale in the metro Phoenix and Scottsdale areas of Arizona. This is less than 1 month’s demand. Over 50,000 resale homes were on the market for sale in 2007-2008.
Over the past couple of weeks, I have shown 7 different subdivisions in the south Gilbert area priced from $250k-300k Base Price, to a family. All had less than a half dozen home sites left and All were writing contracts while we were there.
According to The Phoenix Housing Letter by R L Brown and Greg Burger, new home sales in Gilbert have tripled. In 2008, when there were nearly 50,000 SPEC homes available across the valley, today only 343. Builders need to ramp up their building in the metro Phoenix area. Scottsdale only has 2 subdivisions of new homes for sale. They are selling well. Once they are gone, only custom will be the option for new in Scottsdale. It will take builders 1-3 years to catch back up to building what is needed. I predict another bubble, but not a large one.
Next, 47,000 jobs have been created over the last year. Forecasts have been raised to another 50,000 jobs over the next year. More Jobs is the answer to our recover. It is all about momentum.
This time things are different. Most investors are paying cash or putting large down payments on homes. They are real investors not the faux investors the banks created that dumped us with a 100,000+ empty homes in 2007-2008. It’s harder to get financing for most buyers and especially for investors.
It has been 5 years! Markets don’t go down forever and it is time for ours to rebound. Can you imagine what would happen if this was not an election year? Those bozos in Washington, both sides, just can’t act in the best interest of the country, instead their party’s best interest.
Last, Consumer Sentiment. Jobs are being created. People are making more money and spending more money. Consumer Sentiment is at its highest level since January 2008.
This is Jeff Cameron, Your Realtor for Life!
Please call me to review the market, home values, relocation, investing or just about anything that has to do with Real Estate. 480-502-7699