A housing report from the Arizona Republic. “Home prices are a touchy subject in the Valley. People aren’t bragging about how much their home appreciated in a single month. There are no bidding wars for homes. No one is talking about how they’re going to spend their equity.”
“No, homeowners today are watching every sale in their neighborhood, cringing if they see ‘For Sale’ signs lingering too long and losing their tempers when neighbors drop prices.”
“‘The housing market hasn’t cooled as much in central Valley neighborhoods,’ said real estate agent P.J. Dean. ‘But if you are trying to sell a home in Surprise now, good luck, because that’s where speculators snatched up homes, and builders are offering the best deals.’”
“In the Surprise ZIP code of 85374, home prices hit a low for the year in August. Home prices in the Buckeye ZIP 85396 hit a high in February and have been yo-yoing since. In the Gilbert ZIP 85297, prices have been falling since June. In the north Valley, prices in Anthem fell to a 2006 low in August.”
“‘Most people who bought on the fringes last year are likely going to have to hold on for at least three years or sell for a loss,’ said real estate agent Margie O’Campo.”
“In January, when the Valley’s housing market started to come down from last year’s wild run-ups, about one-third of metro Phoenix’s ZIP codes experienced small price dips. Now it’s more than half. ‘The Valley’s housing market is going through a definite and obvious correction,’ said O’Campo de Castillo. ‘Homes are selling, but they have to be priced right. No one is paying last year’s inflated prices.’”