So you want to Buy a Home? Great, but get in line…
– that is the current number of Active Homes For Sale in Maricopa County in the MLS system… that is also a new low and the first time I’ve seen it dip below 3,000. We’ve been trending downward for some time and thought we had low inventory in 2020, but 2021 has so far said “hold my beer”.
Year over year, inventory is down about 53% while demand is up 31%.
That can create quite a frenzy. Sellers often know this and of course their listing agents do too. Some are putting homes “Active” on the market, but disallowing showings for several days while the interest list builds and then collects offers over a few day period before making a decision. What does this do? It wastes the time of so many (frustrated) buyers. There is a limit to how much a property will bring… there is usually no need to sit on 35 offers looking for another. It’s just ridiculous, in my opinion.
How are we combatting this problem?
- If possible, finding homes before they hit the open market…
- Calling on Coming Soon listings
- Trying to target New Listings Monday – Wednesday to avoid the weekend rush
- Leveraging our industry reputation to get our clients’ offers accepted
- Figuring out what’s important to the seller and then angling that in our favor (for example; offering post possession or a leaseback while they find their next home)
Buyer “burnout” is a real thing and after missing out on several, it’s not uncommon to see some back away from the market for a breather.
Expect to see lines of people waiting to view when you arrive… multiple offers in hand within 24-hours of listing… appraisals being waived… shortened inspection periods… no home warranty being paid for by the seller… and if you need help with closing costs, you can pretty much kiss that thought goodbye.
Why is this occurring? Several reasons…
- Mortgage Interest Rates are at all-time lows just over 2% in many cases… that means greater buying power
- The local economy is thriving for the most part with diversity in business that’s coming here from all over the country and world
- People are flocking to Arizona from other states & regions
- Pent up demand from those tired of renting
- Despite the run up in prices, we are still more affordable than just about any other major “metro” in the Western United States
- New Home Construction cannot keep up with the pace of demand
For all the reasons above and more, I do not believe that we are in a bubble with a housing crash imminent. Very different position and circumstances than back in 2006/2007 (which I was in business during).
Yes, the market can be difficult for Buyers, but that does NOT mean we cannot find success. It just takes the right plan, patience and expectations to ensure we cross the finish line, together.
Thinking about a move?
Let’s chat and see if now might be the right time for you.