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Jonathan Dalton
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Pent-Up Buyer Demand Revealed

Pent-Up Buyer Demand Revealed

Jonathan Dalton, Phoenix Real Estate AgentFrom time to time you’ll see a real estate blogger mention that the phones have started to ring along with the phrase “the market might be picking up.” It’s even happened here at least once, maybe twice.

Of course, the sales figures never seem to follow the ringing phones. This doesn’t diminish the importance of a ringing phone in a fairly quiet real estate market. But it does provide some evidence for the notion of pent-up buyer demand.

Buyers do exist here in the Phoenix real estate market, and in other markets as well. You see them emerge from their burrow from time to time like Punxsutawney Phil checking for his shadow then retreating back into the comfort of their own existence without so much as another word. A few venture out and actually make a purchase while others stand on the sideline and debate the action.

What is everyone waiting for? The bottom of the market, of course. Except no one is going to know we’ve hit the bottom until we’ve bounced back off. There may be some inklings that things are a-changing but until there’s a firm rebound in sales and a firm drop in the inventory, the true bottom can’t be identified.

Watching the Phoenix real estate market almost is like watching a junior high school dance at this point. The music’s playing. A toe may be tapping here and there and someone may even be bobbing their head. Many of the attendees – not all, but many – want to dance but the dance floor’s empty. No one wants to lead the way for fear of learning later they made the wrong decision (which in junior high means punch will be flying your way along with a ton of laughter.)

Buyers collectively are waiting for everyone else to do something so they feel better about the decision their making. It’s not a question of if they’ll venture onto the dance flooor – the population here in Phoenix isn’t declining – it’s a matter of when.

[tags]Phoenix real estate[/tags]

No Comments

  • Missy Caulk says:

    You change companies, so did I to KW from Remax after 11 years. 🙁

    I didn’t want to but had too, our local office just wasn’t right.

    I don’t think we’re at the bottom either, but my phone is ringing so happy, happy.
    Best of success to you, you will love Remax International.

  • Francy says:

    Our phones are also ringing. We are talking to more qualified buyers who seem to be cautiously stepping into the “serious buyer” arena. Could this be the beginning of a change? One may only hope.

  • Jeff Brown says:

    Guys — Jonathan is right about increases in calls — if the the rubber isn’t hitting the road more often, it’s irrelevant. We’re seeing a lot more tires hitting the pavement lately.

    In a recent article by Steve Brown in the Dallas Morning News, Phoenix, gulp, was the fifth fastest selling market in the country for December. (89 days)

    They weren’t the only surprise. San Diego was third fastest at 83 days.

    My post yesterday spoke on this exact topic.

    When the investor wallet begins to open, it could mean a shift in the wind. And trust me, they’re opening at a rate easily exceeding that of just 90 days ago.

  • Missy – thanks for the best wishes.

    Francy – we’re seeing about the same thing on both sides. No one seems to believe the bottom is here but they’re less inclined to wait and see.

    Jeff – really? Fifth fastest? Seriously? That’s more scary than encouraging.

  • Greg Tracy says:

    Real estate should be looked at as a good long-term financial investment, not a quick buck. The reason so many markets (including Phoenix)are hurting right now is because people began looking at real estate as a get-rich-quick scheme and it all became about flipping and fast profit.

    Real estate is a good long-term financial investment. If someone has a good Realtor and buys a good home for a fair price they will make plenty of money when they sell in 7+ years.

  • Hey, Greg! Thanks for stopping by!

    Watching the speculators (definitely not investors) move from city to city was like watching a swarm of locusts. Eat all that can be eaten and move on.

    I always figured it was the next logical step for those who still had money left after the tech day-trading bubble burst.

  • cameron says:

    I decided to buy because I own a house and watching both my new house price and my current home price fall in unison made no sense. If I didn’t own a home that would be different, I would wait.

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