With home prices coming down and the high number of homes listed it would be the ideal time for buyers to make a move. There are several factors that help make this a buyers market: 1. Interest rates are low and banks want to lend money to qualified borrowers; 2. The unemployment rate is low; 3. AZ is a great place to live and work; 4. There is a limited amount of land for new housing, keeping pressure on the demand for re-sale homes. One way to view the health of the real estate market is to focus on the "absorption rate" (i.e. how long would it take for the current inventory of homes on the market to sell). The current absorption rate is about 11 months. Some examples of past abnormal absorption rates include 19 months, when the market stalled in the 1990's and there were 3 times the number of homes for sale here than there are now; and 1.5 months, during the feeding frenzy of 2005 when there was almost no inventory and Buyers lined up outside homes to make offers. The current 11 month supply of homes for sale is NOT NORMAL. Supply and Demand are tilted to the buyers side.
So... If you are a Seller, hire a great Realtor(R) and price your home fairly. Most homes that don't sell in the first three to four months or two are overpriced. If you are a Buyer, you have many choices... find a house you like and can afford and make an offer. Give me a Call Linda 602-391-8246 or e-mail azhomes4u@gmail.com
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