Arizona homes for sale

Are home prices rising or falling? May 13, 2002 In an ideal world, you would always buy real estate when prices are low and sell when prices are high. Unfortunately, few of us have the luxury of timing our moves with the real estate cycle. Even if you did, how would you know whether prices were rising or falling? Home sale statistics reported in the media can be misleading. They're usually out of date by the time they end up in print. Nationally, sales of existing homes increased 16.2 percent in January 2002, compared with the previous month. This increase was in the number of closed sales. So, the increase actually measured market activity that occurred in November and December. Buyers usually enter into a contract to purchase a home 30 to 60 days before the transaction closes. Home price statistics are also misleading. Increases and decreases in price are typically measured in terms of changes in the median price. The median price is the price that is halfway between the highest priced and lowest priced home sold in an area during a specific time period. When the median price rises, this doesn't necessarily mean that absolute values increased by that amount. It means that more buyers purchased more expensive homes than was the case in the previous reporting period. HOUSE HUNTING TIP: Tracking the inventory of homes for sale is one way to determine whether prices are going up or down.  When the inventory of homes for sale is depleted at a faster pace than it is replenished, prices often rise. If two existing listings sell for every new listing that comes on the market, the inventory of homes for sale shrinks. Usually a lower inventory of homes for sale and high buyer demand puts upward pressure on prices. This happened recently in parts of the San Francisco Bay Area. In late November and December, buyers entered the market at a faster pace than was the case in previous months. Prices didn't rise immediately, but the inventory of homes for sale dwindled. By January and February multiple offers were commonplace for well-priced, well-located properties. Prices moved up in Berkeley, Piedmont and Oakland. A case in point is an Oakland homeowner who listed his home for sale in November of last year for $749,000. After several weeks, he reduced the price to $719,000. Then, he withdrew the property from the market. During the time his home was off the market, one offer was made for under $719,000, which the seller rejected. He then re-listed the property in February for $719,000. It sold with three offers and closed in March for $750,000. The reverse phenomenon occurs when more new listings outnumber the sold listings. If buyer demand drops at the same time that inventories rise, prices tend to fall. Find out how many homes are for sale in the neighborhood where you're interested in buying or selling. How does the inventory count compare with the number of homes for sale last month, three months ago, and a year ago? A realtor who's a member of the local Multiple Listing Service can provide you with this information. Analyze neighborhood conditions to determine if there are any factors that could change the buyer-seller ratio. A development of several hundred new homes in the area could saturate the market with inventory, and possibly send prices lower. On the other hand, improved transportation-a new highway or rapid transit station nearby--could bring more buyers and press prices higher. THE CLOSING: Be cautious if you're buying after a huge run-up in prices in your area. The market could be poised for a correction. Dian Hy mer is author of "House Hunting, The Take-Along Workbook for Home Buyers", and "Starting Out, The Complete Home Buyer's Guide," Chronicle Books. Copyright 2002 Dian Hy mer Distributed by In man News Features More - Real Estate Columns   FREE reports on homes sold in your zip code Arizona Homes - All available zip code reports Chandler Homes Gilbert Homes Glendale AZ Homes Goodyear Homes Mesa Homes Phoenix Homes Scottsdale Homes Sun City AZ Homes Tempe Homes   FREE custom-made reports on homes for sale Metro Phoenix Southeast Valley. Homes for sale in Ahwatukee, Chandler, Gilbert, Mesa, Queen Creek and Tempe. Phoenix. Homes for sale in Anthem and Phoenix. Southwest Valley. Homes for sale in Avondale, Buckeye, Goodyear and Litchfield Park. Northeast Valley. Homes for sale in Carefree, Cave Creek, Fountain Hills, Paradise Valley, Rio Verde and Scottsdale. Northwest Valley. Homes for sale in Glendale AZ, Peoria AZ, Sun City AZ, Sun City Grand, Sun City West, Surprise and Youngtown. Wickenburg homes for sale. Metro Tucson Tucson area. Homes for sale in Marana, Oro Valley and Tucson. Green Valley area. Homes for sale in Green Valley and Sahaurita. Other Great Arizona Towns • Casa Grande homes for sale • Flagstaff homes for sale • Lake Havasu City homes for sale • Payson homes for sale • Prescott homes for sale • Showlow homes for sale • Yuma homes for sale