We've been hearing for long time that it's a buyer's market in the Phoenix area real estate arena (as it has been across the country). But it's also a sellers market. Yes, that's right -- a sellers market.
We have a very unique situation in the Phoenix area real estate market. Let me explain: the mid-level and upper level homes are still in a buyer's market because there is more supply than demand. However, the lower-level homes (under $100,000) are in a seller's market. There is clearly more demand than supply.
The situation has been building over the last six months in the Phoenix area real estate market. Homes in the lower level segment are attracting anywhere from 3-15 offers within the first week on the market. This is resulting in homes demanding a "highest bid" and selling over the asking price.
The chart illustrates this demand. Read it in this manner: 9,330 residential properties sold in May of 2009 in the Phoenix area real estate market. 3,866 of those properties sold for under $100,000 ( 41.4% of all sales). However -- of the 3,866 homes that sold for under $100,000 -- 3,519 (91%) were Metro Phoenix foreclosures. The situation in this market segment resembles the frenzy of 2005.
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