The real estate market in Arizona has been extremely dynamic over the last three years. Our current market is the result of the 2005 boom, which shot prices through the roof and easily doubled the value of some properties.Now we are left with a surplus or over supply of homes and this has a tendency to drive prices down, as many owners are forced to sell. Another cause for the weak market and massive amount of foreclosures is the high amount of interst only and teaser loans, which were issued during the boom. These loans are now beginning to adjust to their real value and people can't afford the new payment. This unfortunately has left many with no choice but to sell or simply walk away from their homes

Sellers

What does all this mean to you? It means get your gloves on because competition is tough. Banks are re-selling these foreclosure properties at a good discount and most properties I have seen do not need much repair. To have a chance of selling your home, it must be priced correctly! Not on the high side, or even the same as the last comparable. The old phrase "LETS START HIGH AND SEE WHAT WE GET" does not work in this market. Your home will not get shown and you will end up taking dramatically less than if you had priced it correctly to began with. The home must also be in good condition with no repairs and show well. Buyers now have so many homes to choose from that your house has to be in good shape, plus a fair deal, or they will simply move on to the next five on your street for sale.

Buyers

It is your time to get a great deal! With prices down and interest rates at record level lows, these are the recipes for success. Arizona has been experiencing tremendous growth for years, and real estate was excellent here even before the big boom. Arizona is one of the fastest growing states in the country and will continue to need housing to support all the influx of people. Buyers often say to me, "I am a bit cautious to buy because I think the market will drop more". My reply is "yes it very well could and your right to be concerned". My next question is, "How long do you plan on owning the home?" Real estate is not a short-term investment.Although it did become one during the boom, but that is not normal. I tell potential buyers you never want to buy when prices are at their peak, because there is only one way to go,down. If you are planning on buying a home and staying in it for at least 3 or 4 years, you will be fine. The National Association of Realtor's state, that on the average, a home will double in value every ten years! In addition you also have a nice tax deduction for mortgage interest, plus simply the fact that you are a homeowner and get to enjoy your own property. You have to live somewhere, why not make an investment in your future at the same time?