Ailing Phoenix housing market may be showing signs of improving
PHOENIX — A narrowing gap between what homes are listed for and what they actually sell for is being perceived as an early sign that the ailing housing market in Phoenix could be on its way to recovering.
“Both buyers and sellers are readjusting their expectations,” said University of Arizona economist Marshall Vest. “Buyers are coming back into the market with reasonable offers. More homeowners are pricing their homes to sell.”
The spread between what Phoenix-area homes sold for in March and what they were listed for is the narrowest it has been since mid-2004, according to Vest’s analysis of data from the Arizona Regional Multiple Listing Service. The gap hit a high in mid-2005.
“People are realizing this isn’t a fad,” said Margie O’Campo de Castillo of Arizona Dream Realty. “Listing prices have to come down for homes to sell, and buyers have to be realistic. It’s good to see it finally happening.”
Homeowner Thomas Herz realized there was a glut of homes for sale when he decided to sell his central Phoenix home earlier this year.
He originally wanted to list it for $340,000, the price he believes his three-bedroom home in a historic district is worth now.
Herz didn’t want to wait months while it sat on the market, however, and then have to go through the process of lowering his price one or more times. He and his real estate agent watched as the comparable sales in his neighborhood started coming in lower.
“After watching what was going on with the market, I wanted to list it at $319,000 but decided to go with $314,900, hoping it would sell faster,” said Herz. “Two years ago, homes like mine were selling in the high $300,000s. This house is a great deal for someone.”