Arizona Ranked No 1 for Value Gains
Finally, Arizona Real Estate Market is achieving recognition for the gaining home prices! In a recent article “As Asking Home Prices Keep Rising, Inventory No Longer In Free Fall”, Chief Economist Jed Kolko says Arizona’s property value gains are roughly 25% compared to a year ago.
Inventory and prices affect each other in three ways:
- Less inventory leads to higher prices. That’s because buyers are competing for a limited number of for-sale homes.
- Higher prices lead to less inventory – at least in the short term. Everyone wants to buy at the bottom; no one wants to sell at the bottom. When prices start to rise, buyers get impatient while many would-be sellers want to hold out in the hopes of selling later at a higher price.
- Higher prices lead to more inventory – in the long term. As prices keep rising, more homeowners decide it’s worthwhile to sell, especially those who get back above water, which adds to inventory. Also, builders take rising prices as a cue to rev up construction activity, which also adds to inventory.
This is great news for Sellers contemplating on selling their current home or those homeowners who waited out the value decline and opted NOT to short sell or foreclose. Arizona continues to be a destination where families want to move and with mortgage rates still at an all time low, WHY NOT!
Ric Ashby is the Designated Broker and founder of Ashby Realty Group, LLC. Prior to forming the Ashby Realty Group, Ric was the top sales person for the third largest Real Estate company in Arizona (....
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