I had the pleasure in speaking with Tina Tamboer-Glatfelter with the Cromford Document on her take on the Scottsdale and Phoenix Real Estate sector prediction. For those of you who are not familiar with the Cromford Report, it was made by Michael Orr. Michael Orr is a greatly regarded Phoenix Real Estate Specialist, and in my very humble viewpoint there is no much better resource available. I asked Tina some questions on the Scottsdale and Phoenix Real Estate Market Forecast.
What do you believe the development in appreciation will be in the next year?
The Cromford Report seems to avoid producing long term forecasts. Nevertheless with that said, it is sensible to expect bank inventory to keep falling and eventually diminishing to a non-threatening degree in 2013. Without these discounted properties in the calculations, median and average sale prices naturally surge. Also as investors stick to the troubled inventory to other states, that will put traditional buyers back in the driver seat in several places. Conventional buyers requiring funding rely more on appraisals, which are very traditional and may slow down the appreciation costs as fewer cash buyers will be active. We may see costs fluctuate during the transition, but at some point get back on track to a self-sufficient appreciation fee.
What is the distinction in this trend for lower end value points vs.increased end price points?
Prices are driven partly by demand. Lower end demand is affected more by work, affordability and rates of interest for instance. Higher end demand might be affected more by company profits and stock exchange overall performance. As past recoveries have trended, the lower end prices tend to recuperate first, then the more expensive follows a year after. If this trend is true for our recovery, then the entry level has been recuperating for around 1 year now and we must begin to see some relief for the higher end in 2013.
We view low inventory for Scottsdale, do you see this trend ongoing?
We have started to notice the inventory taking an upward turn as Scottsdale enters into a periodic decrease in demand, specially in the northern upscale towns. In the short-term, I foresee we will see inventory in Scottsdale raise until "Buyer Season" begins in January.
What exactly does this information mean to you? If you're looking to purchase, assume costs to be upward, but inventory being higher over the next year--so more options, more dealing power etc. If you're looking to sell, price ranges would be higher but you will have less dealing power next year than you'd in this seller's industry.
What do you believe the development in appreciation will be in the next year?
The Cromford Report seems to avoid producing long term forecasts. Nevertheless with that said, it is sensible to expect bank inventory to keep falling and eventually diminishing to a non-threatening degree in 2013. Without these discounted properties in the calculations, median and average sale prices naturally surge. Also as investors stick to the troubled inventory to other states, that will put traditional buyers back in the driver seat in several places. Conventional buyers requiring funding rely more on appraisals, which are very traditional and may slow down the appreciation costs as fewer cash buyers will be active. We may see costs fluctuate during the transition, but at some point get back on track to a self-sufficient appreciation fee.
What is the distinction in this trend for lower end value points vs.increased end price points?
Prices are driven partly by demand. Lower end demand is affected more by work, affordability and rates of interest for instance. Higher end demand might be affected more by company profits and stock exchange overall performance. As past recoveries have trended, the lower end prices tend to recuperate first, then the more expensive follows a year after. If this trend is true for our recovery, then the entry level has been recuperating for around 1 year now and we must begin to see some relief for the higher end in 2013.
We view low inventory for Scottsdale, do you see this trend ongoing?
We have started to notice the inventory taking an upward turn as Scottsdale enters into a periodic decrease in demand, specially in the northern upscale towns. In the short-term, I foresee we will see inventory in Scottsdale raise until "Buyer Season" begins in January.
What exactly does this information mean to you? If you're looking to purchase, assume costs to be upward, but inventory being higher over the next year--so more options, more dealing power etc. If you're looking to sell, price ranges would be higher but you will have less dealing power next year than you'd in this seller's industry.
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