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Casa Grande Real Estate Market Update – November 2012

What a refreshing outlook! In Arizona we’ve been experiencing a greatly improved housing market and it’s wonderful to hear this outlook for the entire nation! Lawrence Yun, chief economist of the National Association of REALTORS said that the housing market clearly turned around in 2012, at last week’s annual National Association of Realtors Conference and Expo. “Existing-home sales, new-home sales and housing starts are all recording notable gains this year in contrast with suppressed activity in the previous four years, and all of the major home price measures are showing sustained increases,” Yun said.

Yun further went on to say he sees no threatening signs for inflation in 2013 but anticipates inflation to rise in the 4 to 6 percent range by 2015. He predicts interest rates will begin to rise gradually and average 4 percent in 2013 and mid 4% range in 2014.

With rising housing demand and a continued decline in available inventory, Yun predicts higher home prices. “Real estate will be a hedge against inflation, with values rising 15 percent cumulatively over the next three years, also meaning there will be fewer upside-down home owners,” Yun said.

In the Casa Grande area, we’ve already been experiencing the very positive conditions he predicts for the rest of the nation. In Casa Grande, the median price of sold single family homes rose 27.96% from $92,250 to $118,000 from October 2011 to October 2012. The increasing price trend shows more dramatically in homes for sale, with the October median listing price of $135,000 compared to $105,000 just one year ago, increase of 28.6%. The median price of homes in escrow with pending sales increased 39.5% from a median price of $91,400 in October 2011 to $127,500 in October 2012.

While the numbers reported above may seem discouraging to Koenig Estates homeowners because we may have significantly more money invested in our homes, I find that it is good news. With increasing prices and activity in the lower price ranges, opportunities develop for higher price range buyers who may find our neighborhood attractive. Also, improving market conditions across the country will once again allow second home buyers and cross country moves. Arizona will always be an attractive winter home with the beautiful climate 8 months of the year and annual 340 days of sunshine.

One of the most common questions I hear from sellers is, “Are homes selling close to their list price?” The answer is – YES! When properties are listed at or near market value, they sell very quickly and typically for list price or above.

If you have any real estate related questions please don’t hesitate to ask – we are your neighbors and are here to help!

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