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The Economics Behind Arizona’s Housing Market
The Economics Behind Arizona’s Housing Market
By Jeff Buettner
It is no surprise that the housing market has been horrible the past 3-4 years. Recently, the media has been reporting that we are headed for an upswing. I have watched and read several opinions that the worst is over. My question is, can we really come to that conclusion so soon?
The study of economics tells us that we can use the basic principle supply and demand to come to our own conclusion. With a high supply of homes, number of active listings on the market, and a low demand, number of buyers looking to purchase, we will see a drop in market value. When the situation is reversed, the supply is lowered and the demand has increased, we will see home prices increase.
So why is the media reporting that we will see an upward trend and things are looking up? Recently we have seen a few changes. For one, our supply, which has been made up of mostly bank owned properties and short sale listings, has seen a decrease. There just aren’t quite as many homes going into foreclosure as we use to see. Secondly, we have seen a rise in the movement of supply. Simply put, more people, right now, are buying homes. Is it because more investors feel we have hit bottom and are ready to invest? Do first time home buyers feel the same way? Or is it the homeowners who went through a foreclosure or short sale 4 years ago, can now purchase again? Most people think it is a culmination of all three and more.
The lowering of our supply and the increase in demand are all good things. That is why the media is reporting good things. The question I keep asking myself is, will this upswing continue? Is it here to stay? There are a couple of unknowns that keep the mystery a mystery. We know that the banks have foreclosed on an insane number of properties over the years. Anyone who has looked at the numbers also know they aren’t putting all of them on the market right away. Inevitably, there are homes that the bank owns that are just sitting there vacant. We in the real estate industry call this the dreaded shadow market. No one knows exactly when or how many of these properties will hit market. This could easily put a kink in our future supply predictions.
As for future buyer’s, things aren’t all peaches and cream there either. The requirements needed to obtain a loan have really tightened up. A lot of people think now is a great time to buy but the issue is, not everyone who wants to buy, can. If there is only a small portion of individuals who can get qualified to purchase a home and a majority of them buy now, in 2011, who is going to purchase down the road?
For the record, I am not saying now is a bad time to buy or even that tomorrow will be better. Ultimately, there are a lot of things to consider and more than a few unknowns to think about. Don’t look at your local news as the end all, be all of opinions on where we are headed. Look at the facts for yourself and make your own educated decision.
Thanks for reading.
- Jeff Buettner is a local Realtor, blogger, avid coffee drinker and chess player. With more than 4 years in the real estate industry, Jeff can be contacted through his personal site about Arizona short sales and foreclosure at http://realestatewizkid.com.
Your Phoenix Real Estate Agent’s Broker Doesn’t Really Matter
Why your agent's broker doesn't matter...
Why Your Phoenix Real Estate Agent’s Broker Doesn’t Really Matter
Today we live in a world where “starting a business” truly isn’t that hard. If you think about it, what defines a business? Some might prescribe to the belief that all that matters is the right corporation documents being filed with the appropriate parties. Others look at the professional appearance that the business portrays (website, business cards, stationary, etc.). A lot of people think of size as a determining factor. If a company has 10,000 employees, it must be doing something right…
In a normal scenario, these are all good things to look for. Unfortunately, in real estate, this isn’t the case. Realtors are independent contractors which means they work for themselves. While their brokerage plays a role in how THEY run their business it doesn’t always guarantee you will have a positive experience. Brokerages, for the most part, don’t care what kind of agents they bring in. The more agents they have in their brokerage the more money they make.
What does this mean to you? When your friend, relative or neighbor mentions that XYZ brokerage sold their home and went above and beyond all while being professional, honest, and caring, they aren’t 100% correct. Their agent did that, not the brokerage. When you realize you need to move, you shouldn’t just call up XYZ brokerage and expect the same service. Make sure you get the name and number of the exact same person who went above and beyond for your loved one.
Ultimately, the broker is an agent’s set of tools. It’s the system behind the machine. I have been around Realtors and the real estate industry for awhile. I have seen great agents from small unknown brokerages and less than adequate agents with a well known brand behind them. Do you really care what benefits or tools said brokerage is offering your agent if it doesn’t affect your transaction? Let me ask you this. Do you care what accounting software your local deli uses as long as they provide a superior service and/or product? Didn’t think so.
So what should you do? Interview the agent not the brokerage. Find someone you like, trust, and in this market, want to be in constant communication with for potentially the next 3-8 months. At the end of the day, it’s your agent not their broker who are going to be answering your calls on the weekends, spending countless hours working FOR you, and going to be the person delivering the good news when your home has closed.
Thanks for reading!
- Jeff Buettner is a local Realtor, blogger, avid coffee drinker and chess player. With more than 4 years in the real estate industry, Jeff can be contacted through his personal site about Arizona short sales and foreclosure at http://realestatewizkid.com.
Phoenix Valley Ice Skating Rinks
Looking for a ‘cool’ way to spend the rest of your summer? Getting in to the Holiday Spirit? Need to sign the kids up for a sport?
Well, how about ice skating!
With locations all over the Phoenix Valley, it is sure to be a fun way to spend time with the family.
Arcadia Ice Arena
3853 E. Thomas Rd.
Phoenix, AZ 85018
602-957-9966
Polar Ice Peoria
15829 N 83rd Ave
Peoria, AZ 85382
623.334.1200
Polar Ice Chandler
7225 W Harrison St
Chandler AZ 85226
480.598.940
Polar Ice Gilbert
2305 E Knox Rd
Gilbert, AZ 85296
480-503-7080
Ice Den
9375 East Bell Road.
Scottsdale, AZ 85260
(480) 585-RINK
Oceanside Ice Arena
1520 North McClintock Drive
Tempe, AZ 85281
(480) 941-0944
Desert Swirl Frozen Yogurt Review
Desert Swirl Frozen Yogurt
Desert Swirl Frozen Yogurt
Craving a cold, sweet treat during the summer temperatures? If you happen to live in the North West portion of the valley, then head to the corner of 43rd and Thunderbird to Desert Swirl. This frozen yogurt shop not only has great flavors such as cookies n’ creme and cake batter, but also boasts about what it doesn’t have—artificial ingredients. In fact, there are only 8 ingredients in the creamy goodness they sell.
Another benefit of Desert Swirl Frozen Yogurt is that that natural sweetener fructose is all they use in their product, no aspartame or Splenda.
For a mere 32 calories you can have 1/2 a cup of frozen yogurt. It almost seems too good to be true! Desert Swirl is gluten free and claims being safe for most diabetics and those who are lactose intolerant.
Head over to 43rd Avenue and Thunderbird to try a frozen yogurt today. Afterall, it’s going to be a hot summer.
Ways to Beat the Heat
Now that the kids are out of school, are you looking for ways to beat the heat? Try out some of these summer activities.
- Cool off in the pool. Not lucky enough to have one in your backyard? No problem! Visit any one of the public pools in the area.
- Visit your local library. Libraries throughout the valley are hosting summer reading programs, art projects and special events such as themed activities centered around Harry Potter and the Deathly Hallows Part 2’s box office debut.
- Attend a concert such as After Dark in the Park or head to the Herberger Theater Center with the kids to see Annie. If you are looking for an even better way to get out of the heat, try driving to Flagstaff and attend the 9th Annual Flagstaff Music Festival June 18 and 19.
- Not in to the theater?
How about seeing a movie? Movies opening this week: Mr. Popper’s Penguins and Green Lantern.
- Some in-door options for activity during the summer heat are:
- Jumpstreet. This indoor trampoline playground is a great option for kids needing to get the wiggles out. And it’s a great option for teenagers too.
- Weekend hours are: Fri / Sat 10am to Midnight. Also check out their Friday Teen Night: Junior High – 6:00-8:00pm – $12 for 2 hours and High School – 8:00-10:00pm – $12 for 2 hours
- For a little extra cash, you can visit any one of the indoor amusement parks in the valley.
Whatever you choose, you have to agree that there are numerous fun ways to beat the heat this summer. Let Phoenix.org know which one is your favorite.
Phoenix Welcomed Us Well
When I learned that my family would be moving to Phoenix from our town in North Carolina, I have to say I was very nervous. But it turns out that moving to Phoenix has been a wonderful experience. Seeing that North American truck pull up brought on quite the gamut of emotion, from fear to elation, it was quite the emotional roller coaster. The city has welcomed my family and we are all glad that we are here. There is so much to do and the quality of life can’t be beat. Yes, moving to Phoenix was the right move.
First of all, the people have been so open and welcoming. We’ve made new friends very quickly. The kids love their new schools. The teachers are on top of their game. We have had no qualms about their education. After school, there are so many things for the kids to do. They can swim in the public pool or sign up for classes or sports through parks and recreation. I love that there are so many arts and historic sites for us to explore and learn.
My husband has been thrilled with the golfing. We had no idea that there were so many public courses. We’ve also enjoyed the hiking and other outdoor activities. I think we were afraid that moving to Phoenix the heat would keep us from being the outdoorsy family we always were but that has definitely not been the case. In fact, with an average 300 days of sunshine, we are always outside. Just don’t forget the sunscreen.
However, there are lots of things to do inside as well. The Orpheum Theater and Symphony Hall put on so many amazing performances. We try not to miss any of them. The Orpheum especially has been a delight since perhaps one day you might attend the ballet while another you’ll find a custom car show. As for Symphony Hall, it has been wonderful seeing road shows of popular Broadway shows that have traveled here. We also appreciate the wonderful art in Symphony Hall.
We also enjoy the many, many restaurants in Phoenix. We had no idea when we first moved here how many people had also moved to Phoenix from so many different places. We can find any kind of cuisine that we want to eat. Feel like Chinese? Sure, we can do that. What about Greek? Yes, that’s also doable. We’ve really been thrilled eating our way through Phoenix. Sometimes we do fine dining on a date night, without the kids. Other times, it might be quicker family fare. No matter where we are or what our mood is, there is restaurant close by to take care of us.
Yes, I have to say that moving to Phoenix from North Carolina was the best thing we could have done. We continue to discover more about our adopted city every day. We’re proud to call Phoenix home.
Home And Landscape Show FREE Entry Hours!
Friday, April 29 4 p.m. to 6 p.m. you can get in FREE to The Home and Landscape Show at the Arizona State Fairgrounds! If you are of the senior citizen variety, ages 60 and older, you can also score free entry……
Visit ValleyFeverDeals for the full scoop!
Spamalot, February 17th-20th at the Orphem Theater
Spamalot at Orpheum Theatre
The Tony Award-winning musical follows the misadventures of King Arthur, Sir Lancelot, Sir Dennis and the rest of their merry crew as they encounter one wacky scenario after another.
Sunday, 2:00 PM – 7:00 PM
Thursday, 7:30 PM
Friday, 8:00 PM
Saturday, 2:00 PM – 8:00 PM
Golda’s Balcony January 23 2011 at the Chandler Center for the Arts
Golda’s Balcony
Sunday, January 23, 2011 @ 3pm
$38, $46 and $52
Four-time Tony-nominee and winner of the Drama Desk Award for outstanding solo performance, Tovah Feldshuh recreates her outstanding performance in William Gibson’s breathtaking one-women show and multi award-winning Broadway hit play, Golda’s Balcony. Golda’s Balcony is a portrait of the legendary Golda Meir, the Milwaukee schoolteacher who became Prime Minster of Israel in 1969. Meir’s life and indeed the play, encapsulates the dramatic story of the birth of Israel in the wake of the Holocaust, and it’s seemingly endless struggle for peace.
“Enlightening.” The New York Times
“Riveting.” New York Daily News
“Overwhelming. ” The New York Post
“Powerful.” Newsday
For more information on Phoenix, AZ visit Phoenix.org.
