While some may snicker, there remains a large portion of the Valley of the Sun’s homeowners who have equity in their properties. And for them, the change in the market over the past month or two has created an environment where this could be a great opportunity to sell and move into the larger home they’ve been wanting.
Here are the basic realities of the Phoenix market as it stands today:
- Inventory is thin. Very thin. There are just over 14,000 single-family detached homes for sale across the Phoenix real estate market. In Glendale, there are only 687. And in the Arrowhead Ranch area, defined for these purposes as ZIP code 85308, there are only 171.
- Sales activity is at levels not seen since 2005 across the Phoenix area.
- In some areas of the Valley, home values have dropped below their replacement cost. In other words, you can’t built the house for what it’s selling for right now.
- While your home value isn’t what it was in 2004-2005, the values of the larger homes you may have been eyeing also aren’t close to what they were.
And here’s the most important of all …
Assuming your home’s value has dropped by 40 percent or more since the high, with the area’s typical appreciation of 3 to 5 percent a year (that is, when there is appreciation) it will be 12 to 15 years before your home reaches that high water mark again.
In other words, there is no compelling reason to wait for prices to move up to sell. All you will be doing is purchasing the next home at an also-rising price without gaining any kind of substantial equity in the process.
Want to know more about your particular home and your possible dream home? Drop me a line and let’s see what the possibilities may be.