Ahhh the Phoenix area housing market. Depending on who you chat with answers will vary, but if you talk with an REALTOR who is currently working in our market they will tell you like our temperature things are heating up with housing.
Between the investors returning and the first time home buyer credit offered the lower priced homes are being snatched up. Last week I showed a young client a home that quite literally had only been on the market for a few hours. By the end of the day there were multiple offers on the house! Within a week approximately 22 offers had been submitted and it went "Pending" with an accepted cash offer around 15k more than the asking price.
Banks love selling their foreclosed properties to "cash" offers because they don't have to pay out closing costs.....so their bottom dollar is higher. This is frustrating to my first time buyers who are qualified buyers, but paying with a mortgage, cash beats them out, they are bummed and don't want to continue after a few times.
It means things are changing to a competetive market once again for buyers. (at least on the homes around 100k) Buyers need to hang in there and continue the hunt for their new home. More foreclosures are forcast to hit our market unfortunately and this is still a GREAT time to buy a home! Great prices and great tax incentives!
