{"id":275,"date":"2012-08-30T03:51:43","date_gmt":"2012-08-29T22:51:43","guid":{"rendered":"http:\/\/www.allphoenixareahomes.com\/?p=275"},"modified":"2013-10-26T04:04:44","modified_gmt":"2013-10-25T23:04:44","slug":"3rd-quarter-housing-report","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=275","title":{"rendered":"3rd Quarter Housing Report"},"content":{"rendered":"

The rapid shifts of this year\u00e2\u20ac\u2122s market has certainly kept the real estate community on its toes.\u00c2\u00a0 As we enter the final quarter for the year the market still \"\"<\/a>continues on its jerky recovery path.\u00c2\u00a0 The adage that local markets shift quickly and national markets slowly, has never seemed more true than in 2012.\u00c2\u00a0 We began the year much as we ended 2011 \u00e2\u20ac\u201c with the prices finally edging up gently and the market bottom established.\u00c2\u00a0\u00c2\u00a0 By March of 2012 the market acceleration went in to overdrive \u00e2\u20ac\u201c supply dropped rapidly and demand escalated wildly upward.\u00c2\u00a0 This brought long dreamed of price appreciation at a rather breathtaking rate and the market strongly swung to the seller\u00e2\u20ac\u2122s side while handing buyers nothing but frustration.\u00c2\u00a0 FHA buyers got pushed to the sidelines and cash became the only game in town with over 40% of the buyers purchasing with cash.\u00c2\u00a0 Then the summer slowdown occurred and inventory began to creep up as some sidelined sellers came back into the market encouraged by pricing shifts just as some buyers exited thanks to these same shifts.<\/p>\n

That brings us to the 3rd<\/sup> quarter of 2012.\u00c2\u00a0 The market has quieted since the spring feeding frenzy \u00e2\u20ac\u201c supply has crept upwards while demand has slowed.\u00c2\u00a0 The drop off in demand is largely due to seasonal buying patterns, higher pricing, as well as the lowered supply (i.e. buyers can\u00e2\u20ac\u2122t find a home \u00e2\u20ac\u201c too few choices \u00e2\u20ac\u201c or can\u00e2\u20ac\u2122t compete against multiple offers \u00e2\u20ac\u201c such as the FHA buyer).\u00c2\u00a0 In essence, the market is balancing a bit.\u00c2\u00a0 Does this mean that price appreciation is over?\u00c2\u00a0 Or did we just form another \u00e2\u20ac\u0153real estate bubble\u00e2\u20ac\u009d?\u00c2\u00a0 In short, no.\u00c2\u00a0 While there is no magic crystal ball to consult on pricing, it is true that in most parts of the valley housing prices are still below the cost of the construction.\u00c2\u00a0 Ultimately, at whatever pace, the pricing will still need to adjust above the hard costs of building.\u00c2\u00a0 So we expect to see some additional upward price movement \u00e2\u20ac\u201c the only question is at what pace.<\/p>\n

However, there still seems to be little that the facts can do to stop the negative reporting or negative consumer sentiment that crops up periodically about the Valley\u00e2\u20ac\u2122s housing market.\u00c2\u00a0 We much prefer to place our belief in facts.\u00c2\u00a0 In light of that, here are some facts from the Cromford Report that you may find of interest:<\/p>\n