It certainly would be nice, wouldn’t it? No more time spent watching and wondering when the bottom of the Phoenix real estate market has been reached. Cue the fireworks and the sparklers, put your money down on red and go with confidence.
Wouldn’t that be great?
It’s also not going to happen. We won’t know that we reached bottom until we’ve already passed the bottom and seen sales and prices beginning to move. Sales already are more robust than they were a year ago, thanks in no small part to the ridiculous prices that some lenders are attaching to homes.
Prices still are declining for exactly the same reason.
One of the last bastions of the Valley without any bank owned homes present in number where Phoenix’s retirement communities, but even that’s beginning to turn. Bank owned homes are starting to appear in Westbrook Village, in Trilogy at Vistancia, in Pebblecreek and elsewhere. They’re relatively few in number, which means their impact on the overall market in these communities has been minimal, but they do exist.
The question remains, though, what specifically will get undecided buyers off the fence? “Lower prices” isn’t a legitimate answer, not unless someone can answer the question “how much lower?” with a specific figure. And then take action when that figure’s reached.
Vague answers such as “when we bottom” or “when prices are lower” usually are other ways of saying someone’s just not ready to buy. Which is fine. For many, many people this isn’t the time to be purchasing real estate.
But for the rest … the folks who can look at a bank owned detached home in Westbrook Village and realize there’s value to be found in a list price not seen in more than five years … what will the sign telling you to pull the trigger look like?
All I can tell you is it won’t be in neon. And there probably won’t be fireworks going off around it.
By the way … if you’re interested in tracking bank owned homes in any community here in the Valley, retirement or otherwise, e-mail me and I can set you up either via e-mail, RSS or a personalized website.
[tags]Phoenix real estate[/tags]