Buyer’s market in Green Valley?
It’s probably too early to tell here in Green Valley, but some parts of Phoenix are witnessing a Buyer’s market. We won’t really know until all of the Snowbirds Winter Visitors arrive.
The number of homes for sale in the Southeast Valley has increased almost to the level of two years ago, before the market spiked into sellers’ heaven.
It’s a buyers’ market again. Sellers are forced to fix up their houses and conduct open houses. Buyers can sit back and choose from a number of homes and negotiate.
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There is no easy way to find out the number of listings in Green Valley. The Green Valley Association of Realtors® website is now modified to only show that there are more than 250 listings.
Here’s an indication that values peaked here in October, 2005.
December 24th, 2005 at 9:18 pm
October appears to be a very low sales month in both 2004 and 2005. It is therefore likely very unrepresentative. If you compare the price change in montyhs with higer numbers of sales–take June and November, you’ll see that the increase in average price (June ‘04 to June ‘05 and November ‘04 to November ‘05) is actually higher in the recent period (November). If you recall, we discusssed this last winter when I said was concerned about speculation in the market (such as people buying houses to flip them) and you said you didn’t see any. I still think there was/is some of that–look next door to your house–but not yet enough to cause price drops, especially now with the cost of buildng materials rising rapidly (thanks in part to multiple hurricanes) and Tucson adding new development fees. Rather, I expect prices to level out for a spell. But over the next decade, I still think the demographics strongly favor firm home values in warm climate areas like southern AZ and not nearly as much need to worry about interest rates and the economy in retirement communities like Green Valley (where buyers don’t need a job and often pay cash from the sale of a home elsewhere).
One possible fly in the ointment is Sahuarita next door. It seems to me that that area is becoming a middle class bedroom community for families and will be very much economy/interest rate dependent. If home values there soften dramatically, it could affect Green Valley somewhat.