What is really happening in Arizona real estate today?
Give this short video a watch to find out!
5 Myth of the 2021 Real Estate Market
Myth 1 - "There are NO Homes for sale"
The numbers are actually up slightly from earlier this year! Back in March we saw active homes for sale in the Phoenix valley as low as 5000... today (Sept 7,2021) there are over 7000 homes available. That means if you are among those that put your home shopping plans on hold due to lack of options, it may be time to take another look! It is still a seller's market BUT supply of homes is near 1 month (far better than the 2 weeks).
Myth 2 - "Closing Dates are impossible to coordinate"
There is a lot of frustration and angst regarding this one! Even many inexperienced agents have just given up... HOWEVER the truth is that there are many creative ways to handle aligning closing dates or working other aspects to accomplish your goals. Whether that means, extending the closing dates, move them up, staying in current home after close, getting early access to new property or something entirely different. The Drew Team has had success navigating this challenge and helping clients win. In fact we have accomplished this numerous times in 2021!
Myth 3 - "Advertisers will make competitive Market value offers"
In the video is an example relating to what we call "one-trick-pony" companies. Here I'd like to address specifically the investor/corporate buyers who love to say they will make you an offer "at market value." Simply put that is impossible to prove or guarantee because NO ONE can anticipate what could happen on the open market! The reality is that some buyers will have a motivation much higher than anyone else... examples include when a buyer has a friend/family in the neighborhood, there is a special need or even just a sentimental attachment. All of these (among a myriad of other factors) may cause a buyer to go well beyond the norm for price, terms and/or concessions.
Myth 4 - "The Market is slowing down"
Just today I've seen 3 articles with some variation of the headline that "real estate continues cool down" but when you read the articles none of them can demonstrate a change of more than 2%! So here is a graphic that demonstrates what it looks like here in the Phoenix Valley of Arizona:
If you notice over the last three months we have slight up and down on number of closings/home sold but we also have seen a slight uptick in number of homes available for sale -- THIS IS A VERY GOOD THING! In a typical market where buyer/sellers have equal advantage the supply should be 90 days but right now we are hovering at about 4 weeks of inventory (so it is still a seller's market) but that is up from only 2 weeks of inventory. SO WHAT? There is a better opportunity for buyers to find a property now, sellers still have a VERY strong position.
Myth 5 - "This is a Bubble"
Stunned by the number of voices still pushing this narrative! The reality is this, WE HAVE A HOUSING SHORTAGE. Additionally the prices are not "out of control" as you may hear in various circles, it is really right where it should be after numerous YEARS of stunted grow. Here is a quick graphic to demonstrate what it looks like, keep in mind we have a 60+ year average of 3.6(ish)% growth in home values, but are finally correcting for a 9 run below the average:
In addition we have stronger mortgages with better qualified owners, the equity position is significantly better and there have been far less people pulling money out of their homes BUT the largest factor is still simply that only HALF the homes were built in the last decade as in prior, yet demand has continued to grow -- it will takes years to build the homes to bridge this gap!
Bonus Myth: "The Drew Team works a small area"
We focus on the East Valley but work the most of central Arizona and we have connections around the country and beyond as well. Take a look at our 2021 so far and you will see have have served in over 70 transactions (the average agent does 4 in a year) and they have been over a large portion of the Phoenix Valley. What ever your goals, it is our passion to reach YOUR goals, that is what we consider success at The Drew Team and why we have been name for a 5th straight year to America's Best Real Estate Teams, placing us among the top 1% of agents in the country!
The Drew Team is Robin and Steven Drew, Nancy Horn, Robin McAvoy, Casey Hurlburt and Tom Walton... meet the team HERE!
Thank you to our partners in serving First Responders: