Where are we? What happened? The Housing Market in Phoenix and Mesa, Arizona and Surrounding Areas!

26. May 2009 by Teri Ellis.

The real estate market in the Phoenix, Arizona and Mesa, Arizona valley is going through more twists and turns as foreclosed homes come onto the market.

Unfortunately, many buyers are competing against cash buyers – and losing.  The old saying, “cash is king” is true in this competitive  real estate market.

Recently one of my buyers made an offer on a foreclosed property. Over asking price, very clean, and a desirable offer to any potential seller. However, the buyer lost out to a cash buyer even though the cash buyer offered less. Even the REO agent wanted my buyer to get the home, but has no say!

Why? You ask? Would the bank accept a lower offer? In our market, appraisals are all over the place. As of May 1, in order to “fix” or “remedy” the problem, a new federal Home Valuation Code of Conduct  was placed into effect. No longer are the lenders allowed to speak with the appraisers – nor are they allowed to “choose” the appraisers that will be appraising a home “they” are lending on. Bottom line? It’s a mess!

The left doesn’t know what the right is doing, homes are not appraising, and there are multiple bids on the most desirable homes.

Despite the issues we face, Realtors will continue to push through the paperwork, the difficult appraisals, and we will write two, three, four and more offers in order to get our buyers a home. Ridiculous? Yes!! BUT, this, too, shall pass!

For more insight and understanding about what’s going on, click on the links here and here.

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