I have been looking for a new house for a few months now but it seems like there aren't very many homes to choose from and the stuff that comes on the market gets snapped up really fast. Why do you think there aren't very many properties for sale in the Phoenix area?
Sincerely,
Flummoxed Franky
Dear Flum,
I feel your pain, I really do. The real estate market in Phoenix is challenging for a buyer right now. There are several factors that are creating the lack of inventory. The top three reasons I am noticing are:
- Homeowners are not putting their homes on the market because they are still under water but with the new HAFA and HARP programs homeowners are able to refinance and stay in their homes with a more affordable payment.
- Investors are buying up the homes at trustee sale and instead of "fixing and flipping" they are keeping the homes and leasing them out to maximize their investment while our home prices in Arizona continue to rise.
- Banks have been slower at foreclosing and have become better at approving modifications.
There is a great article in the Wall Street Journal that has a few more reasons for the lack of inventory.
The real estate market is always changing so keep your eyes open, hire a great Realtor to help you keep on top of the new houses that hit the market and your perfect home will find you!
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