Valley Real Estate

DeAnna

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Sigh. Unfortunately, institutional investors plus iBuyers (Zillow, Opendoor, etc) are really driving prices up. It's cooled off a little this fall/winter but with so many people moving into the valley, it'll heat up again by Feb/March.

I got a ridiculous offer for my townhouse in the Biltmore area, so I'm moving to a new build in Goodyear! The west valley has been one of the last bastions of affordability. Never thought I'd move west, lol.

I have clients who've been looking to buy for months - they keep getting outbid and are really frustrated. Even new builds are at least 1 yr out, or only selling spec homes. Crazy.
 
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Dback Jon

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Sigh. Unfortunately, institutional investors plus iBuyers (Zillow, Opendoor, etc) are really driving prices up. It's cooled off a little this fall/winter but with so many people moving into the valley, it'll heat up again by Feb/March.

I got a ridiculous offer for my townhouse in the Biltmore area, so I'm moving to a new build in Goodyear! The west valley has been one of the last bastions of affordability. Never thought I'd move west, lol.

I have clients who've been looking to buy for months - they keep getting outbid and are really frustrated. Even new builds are at least 1 yr out, or only selling spec homes. Crazy.
And turning many in to rentals, either Short term or long term.
 

BigRedRage

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The house I am buying, I had to get into a bidding war and ended up 80k over asking just to get it. It's worth it so I was prepared to do so but damn
 

Brian in Mesa

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The house I am buying, I had to get into a bidding war and ended up 80k over asking just to get it. It's worth it so I was prepared to do so but damn
What makes it worth so much more to you? Is it one you had your eye on before the market prices blew up?
 

BigRedRage

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What makes it worth so much more to you? Is it one you had your eye on before the market prices blew up?
I mean, market prices have been blowing up for a long time.

In general, watching the market for months, I thought this would appraise well above their ask anyway. The neighborhood it is in is very desirable and most the houses are much bigger than the one I bought.

It's only going to go up.

I needed 6 bedrooms, it has it and bells on top.
 

jf-08

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I mean, market prices have been blowing up for a long time.

In general, watching the market for months, I thought this would appraise well above their ask anyway. The neighborhood it is in is very desirable and most the houses are much bigger than the one I bought.

It's only going to go up.

I needed 6 bedrooms, it has it and bells on top.
What part of town?
 

dreamcastrocks

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I get a text or call at least once or twice a day looking to buy my home.
I still get them 2-3 times a week, and I sold my house 2 years ago!
 

AZ Native

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I mean, market prices have been blowing up for a long time.

In general, watching the market for months, I thought this would appraise well above their ask anyway. The neighborhood it is in is very desirable and most the houses are much bigger than the one I bought.

It's only going to go up.

I needed 6 bedrooms, it has it and bells on top.
Sounds like you did well for yourself.. Congrats. As far as "It's only going up" we'll see. A correction could be on the horizon. These price increases are not sustainable for our market for Valley buyers.
 

BigRedRage

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Sounds like you did well for yourself.. Congrats. As far as "It's only going up" we'll see. A correction could be on the horizon. These price increases are not sustainable for our market for Valley buyers.
I've been saying that for like four years. Started feeling this is more of a reset than it is bubble. Even if we hit a correction, I don't expect it to be huge and over time it raises again regardless unless everything else falls apart.
 

dreamcastrocks

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Until the demand starts to go down, I don't think there will be a big correction. I thought there was going to be one 2 years ago, which is why I sold. (besides wanting to leave AZ of course)
 

Ouchie-Z-Clown

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I've been saying that for like four years. Started feeling this is more of a reset than it is bubble. Even if we hit a correction, I don't expect it to be huge and over time it raises again regardless unless everything else falls apart.
Yup. That’s the lifecycle of real estate. Numbers that seem crazy now seem beyond sane in 10 years.
 

Red Dawn

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Any updates on the Phoenix real estate market? From what I have seen the prices are ridiculous; homes that sold for $270K in 2018 are now listing for $500K. Any opinions on when an adjustment is going to happen?
 
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Dback Jon

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Any updates on the Phoenix real estate market? From what I have seen the prices are ridiculous; homes that sold for $270K in 2018 are now listing for $500K. Any opinions on when an adjustment is going to happen?
Still ridiculous
 

82CardsGrad

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Any updates on the Phoenix real estate market? From what I have seen the prices are ridiculous; homes that sold for $270K in 2018 are now listing for $500K. Any opinions on when an adjustment is going to happen?
Been part of the real estate business for over 30 years, and have never seen anything like what we are experiencing at present. List prices don't mean a damn thing, as what little actually hits the market instantly has bidding wars and ultimately sells for a multiple above list price. Truly insane and totally unsustainable.
If the broader economy were to experience some type of recession where jobs are lost and personal incomes are ruined, anyone who has bought recently has the potential of getting destroyed.

All else being equal and we don't experience any major economic downturns, the real estate market should remain oveheated at least for the next 12 months, with the only dynamic that can offer some potential for stalling the craziness, would be interest rates reaching levels that push out a segment of buyers...
 

puckhead

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One would think we're due for some precedented times one of these years, but alas, unprecedented rules the day.
 
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Dback Jon

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I'm curious, is the boom caused by an influx of transplants from Cali, Oregon, and Washington State? Retirees?
It is caused by people moving in from everywhere - of course, the biggest state in the Union, which is right next door, will have the most people, but far more in total from the Midwest
 

82CardsGrad

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I'm curious, is the boom caused by an influx of transplants from Cali, Oregon, and Washington State? Retirees?
The "boom" isn't just a Phoenix phenomena. Real estate across the country has gone nuts. Phoenix is likely at the upper end of the craziness though...
The reasons for this "gold rush" cycle are many, some of which have ties to decisions that were made at the federal level many years ago. When the Fed chose to double-down on Quantitative Easing, along with keeping interest rates at historic lows for over a decade, the foundation was put in...
Real estate in the valley has been on a steady rise over the course of the past decade or more. What ignited and amplified the craziness, above and beyond the factors that have been around for a while now, is the Cali migration, along with migration from many other states where the "work from anywhere" shift has brought Arizona an elevated level of new residents who chose to leave poor-weather climates.
 
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Dback Jon

Dback Jon

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The "boom" isn't just a Phoenix phenomena. Real estate across the country has gone nuts. Phoenix is likely at the upper end of the craziness though...
The reasons for this "gold rush" cycle are many, some of which have ties to decisions that were made at the federal level many years ago. When the Fed chose to double-down on Quantitative Easing, along with keeping interest rates at historic lows for over a decade, the foundation was put in...
Real estate in the valley has been on a steady rise over the course of the past decade or more. What ignited and amplified the craziness, above and beyond the factors that have been around for a while now, is the Cali migration, along with migration from many other states where the "work from anywhere" shift has brought Arizona an elevated level of new residents who chose to leave poor-weather climates.
I would also add the Short-term Rental effect (probably 10% of my neighborhood are STR's) as well as corporate investors
 

Folster

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I'm curious, is the boom caused by an influx of transplants from Cali, Oregon, and Washington State? Retirees?
It's multi-faceted, but long term easy money policies(low interest rates) are the main culprit in skyrocketing asset values in my opinion. Where people are departing and arriving has a lot of factors from cost of living, climate, job opportunities, and proximity to families. AZ has a lower cost of living than the west coast, great weather 8 months out of the year, a fast growing economy, and is a short flight or drive to those states you mentioned.
 

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