Change is hard. Seriously, we get it. The last few years have been hell on wheels for most of us in Phoenix. The houses that we bought for what seemed like an obscene amount of money were worth three times what we paid for them just 6 short months later… and then, in a blink of an eye, 10 times less. The secure jobs we had disappeared. It pretty much sucked.Now, we’re hearing that the economy is “coming around.” Interest rates are being held low, jobs are being created, and housing, of all things, is gaining. GAINING! Like, that thing called “equity” that we never thought we’d see again is floating in front of us like an etherel fairy princess becoming us into the promised land. Forgive me if I sound skeptical.However, there is no denying the facts. Two years ago in the month of August, 2,743homes classified as foreclosures sold in Phoenix. 1,844 sold were short sales. The total number of homes on the market that sold? 6,963, with an average sold home price of $165,012.
So let’s switch to almost two years later. In August 2012, 1,101 homes classified as foreclosures sold. 2,165 sold as short sales. However, there were only 7,555 total sales, with an average home price of $191,666. So when you think about it, since two years ago, we have increased the number of homes sold, almost cut the number of distressed homes (short sales and foreclosures) sold in half, and the average home price has risen. Just a little different, huh?
All those things look positive, don’t they? Things are changing, and for the good, right? So why are we so on the fence about it?
The truth is, change is all about perception, not reality. Face it…there’s a reason why the phrase “there are lies, damn lies, and statistics” exists. Words and numbers can be spun to fit the situation you are promoting, and people will believe only what they want to believe. However, there is no denying that the Phoenix real estate market has changed since the housing downturn, and we need to be prepared to act with that change. If you want to sell your house – email or call us and we can tell you what the market is like in your area. If you want to buy a house – email or call us, and we can tell you what other buyers are paying for homes like the one you want. But above all… don’t be afraid of the change, because in just one blink – it could have changed again.
The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
Dawn,
Great post. Solid stats. Reality is good.
I tell you one scary thing here in Atlanta. I’ve now got some of my clients I calling me now to sell, typically ones that have been in 5+ years.
Prices we thought were really agressive and awesome five years ago are now the highest prices in the neighborhood, by far!
So in the Atlanta area, while sales stats (# of units) may be rising (not sure), I can tell you the prices still are not!
I need to write an article like yours for my site, but I’m afraid of the actual data and may actually jsut scare away prospects!
http://www.atlantarealestateinfo.com/
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It will bounce back. Investors from Australia, Canada and Russia are driving the foreclosure prices over market value… this from a friend that practially lives on the courthouse steps… so soon the “normal” market, i.e. that on the MLS will be swinging in a better direction as people prefer inspections and softer money loans.
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