Why Prices Won't Drop in Phoenix

Prices in Phoenix are not going to drop!  There, I said it.  Now, here's why.

This is so simple, I can't believe that nobody else is mentioning it.

Consider the past 7 years of the Phoenix market - 5 years had prices going down, and the past two years have seen a resurgence in prices, but they have not yet come back anywhere near where they were.  People are looking at the last two years and saying with "wisdom", that the prices went too high too fast, and we are looking at a "bubble" that may burst.

Not So!

The market now is *so* different than two years ago - It is totally "upside down" in that now 85% of the homes on the market are resales, not foreclosures.  There are hardly any short sales.

The people who are selling are people who have wanted to sell for a long time, but couldn't due to the mortgage they held.  The people selling now are happy to break even, or maybe take a few dollars out of a sale, but no so much that they can buy a new home with 20% down.  Their motivation is a "better" neighborhood, being closer to a job, #up-sizing or #down-sizing, but - and huge emphasis here - not to make a killing on selling their home!

These people cannot afford to market their homes for any less.  If they market for less, then they will not be able to make the move to where they want to be.  There is no "give" in their pricing.

They cannot change their prices.  Therefore, the prices in Phoenix will remain stable, and appreciation will continue, although slower than past years.


#Avondale , #Goodyear , #Buckeye , #Glendale,  #Phoenix , #Surprise , #Peoria , #Tolleson, #Laveen , #Waddell , #Wittman