All indicators say that we are in a “Seller’s Market”. What does that mean? According to Michael Orr, Director of the Center for Real Estate Theory & Practice at the WP Carey School of Business at ASU, it is based on the age old Supply & Demand equation. When Buyer Demand exceeds the number of homes on the market, it is a Seller’s Market. Conversely, if there are more homes available than Buyers wanting to buy the homes, it is a Buyer’s Market. A balanced market is when demand equals supply. For over a year, our inventory of available homes is at an all time low…. about 16,000 as compared with a “normal” inventory of about 35,000 (using today’s Metro Phoenix population numbers). So why is it a good time to Buy if Sellers seem to be in “control”? Home affordability is presently at 2003 levels, with home prices still attractive to even the First Time Home Buyer. Interest rates have risen in the past month but still historically low. Investors are no longer dominating the market anymore, at only 24% of the buying population, opening the door for owner-occupants to purchase without being “outbid” . The economy is showing signs of positive recovery, and purchasing home now, in more stable times with home prices rising at a sustainable rate is a good move to make.
So Buyers, don’t wait because you think it’s not the best time to buy…..evaluate the reason YOU WANT or NEED to purchase a new home and GO FOR IT. I’m here to help.