PHOENIX – The Phoenix area housing market just set a new record, causing a man to stop looking for an affordable house and live in a motorhome.
The average sale price is almost $ 500,000. This is almost $ 100,000 more than a year ago.
Some prices have started to drop in other major cities, but this has yet to happen in Phoenix. The lack of supply to our growing area remains the main problem and many buyers are simply exhausted by the fierce market.
It’s part of the American dream – owning a home. Until the dream becomes inaccessible.
“This is my home away from home,” said Jason Smith. “As close to a house as possible.”
Smith loves his stainless steel appliances, fireplace and desk. The picky plumber even approves his new bathroom. However, his situation is not what you might think.
“I have lowered all the standards I have for bidding on houses”
“I just can’t compete,” Smith said of the housing market after making several housing offers. The estranged father took a serious interest in fifteen houses.
His wish list is a two to three bedroom house in North Phoenix near his kids and he doesn’t want to spend more than $ 350,000.
“It’s impossible because if you buy a house for $ 350,000 then you bid $ 370,000 and someone is going to pay $ 390,000,” Smith said.
He also learned that in its price range, cash is king for sellers.
With a lease coming up and no homes to move into, Smith had to think outside the box – he now basically lives in one.
He lives in a 42-foot house on wheels that he parks at Deer Valley RV Park.
“It’s not bad to live if you can’t find a house to live in,” he said.
As prices rise and supply remains low, it has never been so great to own a home, but so difficult to become one.
“I have lowered all the standards I have for bidding on houses,” Smith said. “This is where I was at. I finally said, you know what, whatever I can get, I’m going to bid. I was always outbid.”
The home buying process broke this man. “Exhausting, tiring, uncertain,” he said.
About 20 minutes away, Jammie Disanto almost gave up on her home search. “I got very depressed,” Disanto said. “I wanted to give up.”
The first buyer started looking in January. Her wish list was a three bedroom, two bathroom home in North Phoenix for under $ 380,000.
She made 12 offers, saying, “It was extremely disappointing to have taken it off after viewing it and seeing you live there.”
Disanto, who grew up in the valley, even considered buying in another state. Instead, she changed her real estate agent.
“We constantly put on different hats,” said real estate agent Kellie Parten. “Talk to people about ledges, especially when their offer isn’t selected.”
“I’ve been waiting for this for a long time”
Parten with HomeSmart Elite has a book of strategies to use when writing an offer. In addition to offering a premium price, reviews can be canceled, inspection periods can be shortened, and escalation clauses can all motivate a seller.
“When she was referred to me I knew it and so it was even more imperative for me to make it even more successful for her,” Parten said. “It was his 13th try and we managed to set it up.”
Disanto was grateful and now owns it.
“This is my first home,” Disanto said. “I’ve been waiting for this for a long time.”
Parten says the current boom is different from the previous one. Buyers are all well qualified now, which was not the case before the 2008 crash.
“It’s not the same storm that’s brewing,” Parten said. “I don’t see a big crash. We have far too little supply.”
While some prices have finally stabilized in other major cities like Seattle, Las Vegas, San Jose and Atlanta, the Phoenix area is not there yet.
Multiple offers are always the reality, and Parten says buyers shouldn’t be left on the sidelines.
“I wouldn’t say give up completely,” Parten said. “Maybe change your idea of what the house looks like today compared to five years ago.”
Back at the RV park, Smith threw in the towel, saying, “It’s a hell of a time for owners right now… I wish I was one.”
Goldman Sachs recently said home prices would rise another 16% in 2022 and that the investment bank does not anticipate a large increase in inventories anytime soon.
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