Scottsdale Home Values UP!
For months now the media has reported all of the hype about the falling market. The unfortunate aspect to this is that not all markets are the same, despite being painted with this broad media brush. We know we are not alone in feeling that this is a self fulfilling prophecy. The more the media portrays things this way, the more people buy into it, and therefore it becomes true all over.
Well finally, some news coverage on the positive side. According to the Arizona Real Estate Center at Arizona State University, home values in Scottsdale, AZ increased month over month from October to November by 15%!. Prices are still slightly below the record levels set last year. That is where the story really is. What seems to be lacking in most accounts of the market downfall is where they are falling from. 2005 was not only a record year but a frenetic, very out of the ordinary year. Statisicians years from now will be throwing out stats for 05 because they were so far from the norm. What people should be looking at is a comparison to more normal times. If you were to skip over 2005 you will find that statistically, the market values and sales numbers are still above what they were in 2003 and 2004. How can that not be a positive thing.
Many analysts are predicting that the "correction" will be over in early 2007, and that the market will return to normalcy. What does that mean? Consider this scenario: Assume 2005 was a normal year, tracking the same as the previous couple of years. If you look at the values now, they are still higher than they would have been if that scenario held true, or at least the same in most areas. It is estimated that at least 25% of all listings currently on the market are not traditional sellers. They are people who don't have to sell, that are testing to see what they can get. These homes will soon be off the market. Couple that with "fence sitters" who bought into the media over-hype and will soon buy as they see the market stabilizing (they want and need to buy before it shows steady increase) and the over all market conditions of low interest rates and stable economy, and you will find the time to buy is now. You just probably won't see that in the media.
Adam Tarr,ePro
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
info@WeAreAZRealEstate.com
www.WeAreAZRealEstate.com