‘Every Agent Is Getting Ridiculous Lowball Offers’: Phoenix
The Arizona Republic reports that news of the housing bust is echoing off the hills around Phoenix. “Home sales are plunging in metropolitan Phoenix, even as record numbers of people decide to put their houses on the market. For now, the median sales price is holding firm. But with the number of for-sale signs dotting yards across the Valley, no one expects that to last.”
“‘Buyers think, ‘Why should I buy today? It will be less expensive in a month or three weeks.’ Every listing agent I talk to is getting ridiculous lowball offers,’ said Diane Watson, an agent in north Scottsdale.”
“Through the first four months of 2006, the number of existing houses sold in the Valley is down 46 percent from last year and 12 percent from the same time in ‘04. Last month, there were 38,206 homes for sale, a record high. Agents say they are seeing more prices being cut, and there is the persistent question of whether the crucial summer selling season will be strong enough to rescue the year.”
“Neil Brooks, an agent in the north Valley, said the clock is ticking on resales in metropolitan Phoenix. He expects a 10 to 15 percent price reduction Valley-wide if summer selling doesn’t chop inventory. ‘The next 60 days are crucial for Arizona real estate,’ he said.”
“(Broker) Jim Sexton in Phoenix, said job growth and rising population are still in place. He doesn’t expect a price collapse. ‘The market is far from falling apart,’ he said. ‘You’re going to talk about real estate falling in a lot of other markets before you start talking about it here.’”
“(Broker) Margaret Dixon thinks prices could drop 10 to 15 percent in areas hit hardest by speculators. Typically, she said, outlying neighborhoods would “adjust first and adjust the most.” She said areas closer to jobs and transportation are less susceptible to corrections.”
“Erin Middleton and her husband have been trying to sell their house in Cave Creek for about a month. They tried selling it themselves, then hired an agent. Several people have walked through, but no one has gotten serious, even though they spent $8,000 on new paint, carpeting, kitchen appliances and countertops.”
“They dropped the price Monday to $429,000 from $435,000 and are second-guessing their decision not to list the house last year when demand was strong. ‘You can’t sell regardless of the price,’ she said. ‘Nobody’s looking. The market’s not where it used to be.’”