If you’ve been trying to sell your home in Scottsdale, Arizona—or any real estate in Paradise Valley AZ, Tempe, or Fountain Hills—and  you are wondering when the right buyer will show up at the door, take heart.  Sales of existing Phoenix, Arizona homes are gearing up again.  The National Association of Realtors cautions, however, that new home sales across the nation may take another year to recover.

Now that the mortgage industry disruptions that peaked in August 2007 are getting under control, people who are looking to buy a Phoenix, Tempe, or Scottsdale home will be turning up in bigger numbers.  Mortgage conditions have improved partially because lenders have adjusted their practices, because interest rates are low, and because there is a 2008 limit increase on government-backed loans. 

Arizona Realtor magazine quoted NAR’s Chief Economist Lawrence Yun in their January 2008 issue saying, “I expect sales at fairly stable to slightly higher levels.”  Yun also expects home price growth in the middle section of America, helping to increase the national median existing home price in 2008, followed next year by more normal appreciation rates of 1-2 percent above inflation.

Realize that the national median home price is just one index.  There is a great disparity between local markets throughout the nation.  For example, while parts of Florida are struggling, the mountain resort areas continue to appreciate at more than healthy rates.  Parts of our state have seen high foreclosure rates.  But for other people have good credit, this is a great time to buy and they are out shopping for primary homes, second homes, investment properties, and vacation real estate in our beautiful city.

Let’s take a look at some of the scientific data that the economists assess when making projections.  The Pending Home Sales Index improved between August and October but still fell short of the figures from the previous year.  Sales were exceptionally slow at the end of 2007 and that leads them to predict only a modest improvement this year. 

As the Northeastern part of the country led the slump, it will most likely lead the recovery.  Carefully watching the numbers in that part of the nation, economists see that things are starting to improve.  In fact, existing home sales are projected to reach 5,700,000 in 2008, an improvement over 2007 but short of the 2006 numbers of 6,480,000.  The national median home price, down to $217,600 in 2007, is expected to move up to $218,300 in 2008.  Our resorts areas and two-thirds of the metro areas in the nation are actually showing price increases.

So be ready to be back in the game of selling your home.  Make sure it is spruced up for the showings!

For assistance buying or selling real estate in the Phoenix/Scottsdale metro areas, contact us at 1-888-900-LUXE.