Mission De Los Arroyos Report Archive - April 2006
 

Reasons to Feel Good About the Real Estate Market

As I've mentioned in this report before, just because there is a flood of homes on the market, nothing seems to indicate that the housing market is not still moving in a positive direction.

The prices buyers are willing to pay in general are holding (and in many cases increasing slightly) and are significantly higher than they were this time last year. This is true in spite of some homeowners who are asking significantly more than buyers are willing to pay. In other words, sellers who are asking realistic prices are selling and enjoying profits. Those pricing on the curve, expecting the aggressive increases of 2005, are finding that buyers have lots of other opportunities.

In addition to realistic price increases, we still have a lot more going for us: (1) Scottsdale is still one of the top three retirement and second-home markets, and the first batch Baby Boomers are turning 60 this year, (2) Job growth has been healthy and the trend is expected to continue, (3) There's a strong inflow of new residents to the Valley. Latest statistics show that about 475 people per day move to Maricopa and Pinal counties, and (4) Housing is still inexpensive here compared to other comparably sized western cities.

It's all good.