Monday, March 24, 2014

Arizona Home Price Projections and Home Seller Expectations

The National Association of REALTORS® projects that home prices in Arizona will increase by 3% to 5% during the next 12 months, according to the latest Confidence Index survey. The survey includes responses from over 50,000 professional real estate practitioners throughout the United States, and considers home price trends and overall market conditions.

As mentioned in prior blog posts, Phoenix-Scottsdale real estate benefits from a strengthening local economy and continued investor activity. This bodes well for Fountain Hills home sellers who are entering the market this year. However, sale price expectations need to remain realistic, and homes still need to be prepared for the market to obtain the best offers. Here are a few things to keep in mind:

1. Lending standards have eased somewhat, but buyers remain challenged by the approval process.  Pricing your home according to current market values helps prevent problems with bank appraisals.

2. According to an article in the Phoenix Business Journal, new construction home sales have slowed during the early months of 2014. The median price of a newly-built home was about $290,000 in February; down from $301,000 during December 2013. While the article does not point to a specific reason, it's likely that buyers are finding better deals among the inventory of existing homes for sale. Newly constructed homes are impacted by material costs that have been steadily rising.

For the time being, existing homes have an advantage over new construction when it comes to price. But if builders begin to aggressively discount new homes, it could soften the values of similar properties in the area.

3. All real estate is local. Fountain Hills home values could outpace the projections for Arizona home values - or fall a bit short of those projections. Rather than count on a market trend to lift your home value, it's wiser to keep your home in the best possible condition - and invest in the repairs and improvements it needs to draw the best offers.

4. Being inflexible on price and terms can kill a deal, even if market trends are in your favor. According to the Confidence Index prepared by the National Association of REALTORS®, lack of agreement over price accounted for 11% of transaction failures. This isn't to say that you have to take any offer that comes along, but you should be aware of current values and be flexible within reason.

If you are thinking of selling your Fountain Hills home, now is the time to obtain expert advice and prepare for the market! Get started with my free e-book, "450 Ways to Sell Your Home Faster!"

Ready to find out what your Fountain Hills home is worth on the market? Contact me for your free home value and marketing consultation!

Tina Nabers
Nabers Property Management & Real Estate

1 comment:

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