Some people would ask, “if the number of homes being sold is increasing, and the number of homes on the market is decreasing, isn’t the reduced supply causing the price point to increase?”
It is, in some areas. The law of supply and demand is hard at work here in the Scottsdale market, just as it is in the rest of the Greater Phoenix Metro area. The reason the prices continue to fall is because of the quality of the homes that are on the market, not the quantity. Bank owned properties are being liquidated, and the investors are snatching them up because they know that real estate is on sale. Bank owned, or REO properties tend to sit and for a better lack of terms, rot, and when a cash investor comes to the table, the banks are very eager to take a decent offer, even if it means taking an additional discount to have cash in hand.
REAL ESTATE IS ON SALE! The doom and gloom has instilled fear into the hearts of many, and as a result, the market values have fallen below a normal value, which means they WILL bounce back, but not to the levels that you may think. The market will equalize, as long as our government stops screwing around with it.
Below are some snapshots of the current market conditions as of Thursday, July 2nd, 2009:
To view statistics on Queen Creek, visit Jamie Geiger’s most recent statistics update.