I find it appropriate that 2009 is going to close with a rare Blue Moon making an appearance. 2009 was a strange year.
2009 was a great year for investors. The more knowledgeable investors were already buying in 1st Quarter of 2009 when the bargains were plentiful and the prices were LOW.
More novice investors jumped in 2nd-4th Q when there was quite a bit of media attention re: AZ's low prices and consequently there were bidding wars and "teaser" prices on Short Sales and Foreclosures that were designed to generate multiple offers and drive up prices.
I can't tell you how often I was approached by investors who wanted to offer $50,000 on a house listed in the $80s. Just wasn't going to happen unless there were reasons why such a lowball offer would be accepted.
I found a LOT of bargains for my investor clientele this year! All are rented and all are cashflowing.
But in some cases, it took a lot of 'education' to remove a set of false expectations.
Condos are now the bargains. But you need to work with a knowledgeable agent re: FHA and other condo issues.
Housing prices have been going up. Several homes that I sold in the $80-100s are already "comping" approx. $15-20,000 more in less than 12 months.
Will the AZ market "fall" again? I think so. I think there will be a bit of dip. But I don't think the market drop will be as hard or dramatic. I think it will involve higher priced inventory. And the housing inventory in general will be much smaller because banks have become more knowledgeable about Short Sales and Foreclosures. (are the banks competent? well, that's a different story)
I think this is going to be the "new" twist in the AZ market- the role of banks in a distressed market.
I am already hearing that there is a trend of "preapproved" Short Sales- where an agent lists the house but the BANK will set the price from the start.
I have become a "short sale queen" and normally attend a Short Sale seminar/class/program at least once a month to stay current with this constantly changing program.
Happy New Year to all of you. Look for the Blue Moon on 12/31 and here's to 2010!
Prosperity to all...
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