Seller's market is officially in Maricopa

By Dawn Anderson

September 25, 2012 - 4:18 pm

Seller's market is officially in Maricopa

Dawn Anderson periodically writes about real estate issues in Maricopa. Submitted

More than once I have said it is always a good real estate market for someone – you just have to find out who that someone is.

Recently, the real estate market has changed from a buyer's market to a seller's market. This literally means there are fewer homes available to purchase than the number of people looking to buy.

What this creates is a basic housing supply-demand issue.

In Maricopa specifically, this shortage of homes is causing the prices to finally increase in most communities. As an example, a 1,750-square-foot home in Cobblestone has increased approximately $31.11 per square foot between September 2011 and September 2012.* For this particular home, this is an increase of more than $54,000 in value in just one year.

It's the biggest jump we have seen in approximately five years.

This has happened for several reasons including buyers waiting for the so-called phantom inventory to hit the market. It was rumored banks were holding their inventory for the start of 2012. However, the banks never released a large number of homes onto the market in Maricopa.

So, the buyers waiting for this huge inventory increase decided to purchase homes already on the market. The number of available homes then decreased substantially.

Also, when prices start to increase, generally the “bottom” of the market, meaning the lowest it will be going, has already taken place. As such, most investors try to buy up any viable investment opportunities quickly.

All and all, the market seems to have continued to improve throughout the past six months. It is unknown how long it will continue to be a viable market to sell homes, but it does appear to be steady now.

The example above is one of the best appreciations in Maricopa between 2011 and 2012. However, with the seller's market taking place in Maricopa, now could be a perfect to time to sell your home whether you are doing a short sale or straight sale (no bank involved).

*Data taken comparing mls 4528974, 4796826, 4704635

- This article previously appeared in InMaricopa News.

I can tell you from personal experience that 7/2009 was a hot market where every institutional sale brought tens of bids and properties sold for much more than asking price. By 12/2010 in Maricopa, no buyers offered asking price and many good deals were had. In the spring of this year, deals were harder to find and attention for cash buyers turned to short sales, particularly if you could wait out the bank.

Now, a house you could close on in winter of 2011 will cost you 20% or more.

If there is no phantom bank inventory, how come houses are sitting empty, vandalized, and unkept in my neighborhood after two years? Sure would like to see them cleaned up and lived in after so long! If this is a seller's market, it seems like the time to unload them!

LOL! Late again. Today is a BUYER'S market in Maricopa. There are close to 400 homes on the market for sale collecting dust, as opposed to 150 that existed in June (a seller's market). Come on people, let's be ahead of the news and not behind it. Check your inventory and average days on market. - Your Friend Marcus Maricopus :))