Michael Orr, an Arizona State University real estate expert, has predicted that the worst of the Phoenix and Scottsdale housing crash is over. Orr is the director of the Center for Real Estate Theory and Practice at ASU’s W.P. Carey School of Business. He is a well respected real estate analyst in Arizona. According to Orr, the market is looking up. He said that prices are beginning to rise as inventory decreases. Some builders are becoming active again after a long dormancy during the crash. Demand is greater than supply in several price points in the valley, especially the lower end. The higher end real estate markets in Scottsdale usually follow the lower end markets in Phoenix by 6-12 months.
“Each week that goes by, we’re seeing less and less homes available, so anybody who’s in the market to buy is getting more frustrated and more desperate, and that tends to mean they’ll bid higher prices against their competition,” Orr said. There is a continued downward trend in the number of foreclosures. Phoenix has has a decreased foreclosure activity in the past 15 out of 16 months. Orr predicts the recovery has started. “We’re going to have something of a snap back. And, given the very low supply (of houses for sale) we currently have, it’s going to be a feeding frenzy for quite some time.” Prices are rising, in some cases as much as 5 percent a month, he said. Still, because at the bottom of the market they had fallen by 58 percent, there is a long ways to go to get back to normal.
Homes in Scottsdale are still a relative bargain considering how much the prices have fallen. Click to view more information about current Scottsdale real estate trends. Call me at (602) 791-0536 to schedule a showing of any Scottsdale homes for sale.
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