Local experts offer insight on real estate market

What is the condition of the Maricopa real estate market today compared to a year ago?

JAMES SANSON: The market is in an interesting spot; one year ago we were still in a sharp decline mode, and with great programs such as NSP, USDA, $100 HUD and the Federal Housing Tax credit, we were able to slow down the decline. Thus, our real estate market has become more stable. Yet, many of these programs have expired or are expiring shortly or are out of funds. We will need some of these programs to move forward.

BILL WASOWICZ: Up to three months ago it had been relatively stable; however, there has been a dramatic shift recently. On May 1, there were 440 active listings in Maricopa. This number has jumped to over 800 since, in spite of buying activity remaining constant. A new wave of short sales and foreclosures has entered the market and, following the law of supply and demand, this huge increase in inventory can’t help but push values down at least 10 percent in the near future.

RITA WEISS: I believe Maricopa has finally achieved what most believe is the true bottom of the market. However, there are over 1,400 listings in Maricopa compared to 813 last year at this time. There is still a new wave of foreclosures to hit again due mainly to the 5-year ARMs from the “boom” in 2005 that will be adjusting and the inability to refinance due to the lack of equity. The tax credit incentive introduced last year helped push home prices up slightly only to fall back after the incentive ended in April.

Where are your buyers coming from?

SANSON: Most are from Pinal and Maricopa counties.

WASOWICZ: Though we still have quite a few out-of-state – and out-of-country – buyers, most have left for the summer and have been replaced by people who are looking to take advantage of the great values in Maricopa. These groups include homeowners displaced by short sale or foreclosure who have a relative purchasing a new home for them, locals buying an investment property and renters in Maricopa and Greater Phoenix.

WEISS: My buyers are still generally coming from out of state. However, many are investors, who are seeking to take advantage of the low prices and hoping to benefit a few years down the line. They include a number of peo-ple from Canada who are buying homes in bulk, buying one for their second home and the rest for speculation on the market rebuilding. Most still come from colder climates, such as Illinois, Ohio and the Northeast. The rest come from California, where home prices are far higher.

What are the three most critical factors in Maricopa achieving its growth potential?

SANSON:
Hospital
College campus
Private sports youth training centers, so kids have something to do and are focused in the right direction versus wandering the streets

WASOWICZ:
Creation of local jobs through economic development
Rezoning of the Seven Ranches area to encourage development
Attraction of more retail businesses/franchises

WEISS:
Pride of ownership
Affordability
Safety and security

James Sanson is team leader at John Hall & Associates; Bill Wasowicz is co-owner of The Maricopa Real Estate Co., and Rita Weiss is broker/owner at Desert Canyon Properties.

File photo

A version of this article appeared in the August issue of InMaricopa News.