Maricopa Market Update - August 7, 2009
Maricopa Market Update, August 7, 2009: The Maricopa Real Estate market continues to work through an unprecedented amount of distress sales. Bank Owned properties have dominated the Maricopa market since January 2008. With this said there are some strong signs that the market has bottomed in Maricopa. The average price per square foot has risen for the past 3-months and Multiple Offers have become very common. Lending remains a major issue except for Primary home buyers who meet FHA qualifications. Even for those that meet the FHA requirements the competition is very strong. Cash buyers are dominating the market and Banks in particular are aggressively seeking cash buyers. Listing Agents are pricing homes to induce an EBAY like frenzy. It is extremely rare to successfully acquire a property for less than list price. In many cases especially for highly desired neighborhoods in Maricopa homes are selling for well above list price. With this said appraisals are consistently coming in below the contract sales price. This makes it even more difficult for Primary Home buyers using tradition financing. Buyer frustration is very common. For cash buyers don't expect to undercut the market. Cash buyers simply have a better chance for a seat at the table. Both cash buyers and those using financing should expect a challenging Buyer's market. It is very common that Buyer's will need to offer multiple times before getting an accepted offer. Other than the low prices this is a Seller's market dominated by Corporate Banks. The banks will dictate the rules and often move very slowly. For those fortunate enough to acquire a property don't schedule the moving truck just yet. Asset Managers at the banks appear to be completely overwhelmed with the volume of transactions and will often move at the pace of a Sloth. Regardless of closing dates stipulated in a sales contract the transaction will close when it closes. The banks are in control. Any Agent that tells you they can make the banks perform has simply not participated in this market. I can't change the ways the banks work but I will tell my clients the truth of what to expect and will help guide them to make the best deal possible in this market. For some good news prices are great!