Quirks of Phoenix Real Estate

avatarthumbnail.jpgReal estate is a fairly quirky profession and I think it has a tendency to be even more quirky in a place like the Phoenix real estate market.

I was cleaning out my “My Documents” folder and ran across a spreadsheet from May with a list of ready, willing and able buyers and what they were trying to find. And as I went down the list, I realized not a single one ended up purchasing a home here in Phoenix.

Reasons vary from person to person but in most cases the change can be chalked up to the truism that life sometimes gets in the way.

The continued uncertainty of the market probably doesn’t held a great deal. Should you buy now? Should you wait? Will a price chart like this …

Prices for AVONDALE

… or like this …

Prices for EL MIRAGE

… continue flat, rebound or eventually turn lower like this …

Prices for GOODYEAR

Buyers understandably want some certainty as to the direction of the market. Some sellers are hoping to see prices bounce back to where they were, all the while hoping that the market doesn’t turn lower.

One thing that I must say has surprised me has been the tepid interest from Canadian buyers, or at least the lack of immediacy.

With the US dollar sitting at $1.07 to $1.08 Canadian for the past handful of weeks I would have expected more buyers to take advantage of the favorable exchange rate since there’s far more volatility in the exchange rate than in property values. But that hasn’t necessarily been the case as many sit on the sidelines waiting for circumstances to change in whatever way is needed.

We’re quickly approaching the time of year when the market slows naturally, which also is the time of year when the snows hit Canada and interest in the Valley picks up. Soon we’ll put the 100-degree days behind us and the only thoughts will be of golf on New Year’s Day, which isn’t a bad gig if you can pull it off.

Perhaps other real estate markets are just as quirky … that’s for others to say.

[tags]Phoenix real estate[/tags]

About Jonathan

Jonathan Dalton is a 30-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.

  • Out of curiosity, do you see more general interest in Phoenix during the cooler times of the year? Here in Portland our biggest time is the gorgeous summer, since the other 2/3s of the year is rainy nobody really wants to go looking at places.

    -Tyler

  • Michael Denis

    As for Canadian buyers I beleive the upheaval in the economy is more the reason than anything else. Unemployment is as high in parts Canada as it is in the US. Where things were booming in the Alberta economy a year ago things have really turned around so until things turn around I think people will sit on their cash to protect their homes here before venturing into second homes in Pheonix.

  • Tyler – we’re like most places, the market is strongest in the spring and summer and tapers off once school gets back in session.

    Michael – Canada’s got better PR people. 🙂 The run-up in oil seemed to be unsustainable and the Canadian dollar overcorrected when that came to an end, as I think you and I talked about. Beyond that, though, I hadn’t known the economy there had slowed as much as here. In general, Canadians seem to be a little more risk-adverse than we are down here which isn’t a bad thing at all.

  • Jerry

    Hi Johnathan,

    Regarding the Tepid interest of Canucks, I think you will find that the majority of Canucks thinks the US buck will grow weaker. So $1.07 may not seem bad, but they think $1.00 is around the corner.

    At least, that’s my suspicion.

    I am tapped out having bought a few, but I know I’m looking to buy a vehicle, and I’m thinking of buying a US one again. But I’m thinking the buck will go back to par so I’m in no rush.

    Just a thought.

    Jerry

  • Jerry

    Regarding teh economy, it’s very specific. Yes, it’s bad in places, but it’s still pretty strong in Alberta. And oil’s holiding well. I’d expect Albertans to be buyiers again and soon. I’m in AB, and I find things pretty boyant around here still. Yes, the price of Nat Gas is causing our provincial budget woes, but people are spending.

    But that’s Alberta, and I know it’s not as strong in say places llike Ontario.

    jerry

  • On a day like this, where it’s down to $1.06, I’m more inclined to believe you but I still think par’s a little overly optimistic.

    But that’s not really the answer, Jerry. I saw it when we were at par, and actually when the USD was down to .94 Canadian. People were holding out for more … human nature is many always hold out for more rather than work with the scenario at hand.

    Ontario should be flush the way Jim Balsille’s throwing cash around. 🙂

  • Jerry

    Most folks here don’t think par is optimistic. Our major media is actually setting that expectation on a daily basis.

    It would seem like a long shot if it hadn’t hit it last summer, so I think folks are sitting back. But Canucks are also very risk adverse, so maybe they’re just chicken to act. That would account for many folks I know.

    As for Ontario, don’t link Mr Balsillie to that. He may be from Ontario (Kitchener in fact) but his business has little to do with Ontario. He’s doing well because of the American’s demand to all have three cell phones.

  • Judging from the publicity to get the Coyotes, you would think there was money flowing in the streets to support the team. Then again, I may be a little biased. 🙂

    Is your major media more reliable than ours? If memory serves, par now was two years back not last summer. Last summer I had folks buying at about the same exchange rate as now, give or take a couple of cents.