As many of you are have read, inventory throughout the Phoenix Valley is low. We simply aren’t seeing enough new listings to replenish those that are going under contract and because of this, home prices in our market are being driven higher by a natural and persistent lack of supply, not irresponsible speculation. In this situation, it is normal for prices to rise until they suppress demand enough to match the weak supply. Like all investments, there is always some risk, the positive is the Phoenix market is seeing a steady growth in appreciation and is trending with the national average of 5.77%, which indicates the market is growing at a healthy rate and not overly inflated.*
For those that are contemplating selling, it is a good time. However; despite the low inventory, homes getting top dollar and selling quickly are those that have been updated. Many buyers don’t have the vision, knowledge, cash, or time to take on a home that needs updating and/or fixing up. Those buyers that are up for purchasing a home that needs some work, expect to pay significantly under market value for the property. Outdated homes that are priced appropriately, but not significantly below market, may take a bit longer to sell since it sometimes takes time to find a buyer with a vision who is looking for a home they can make their own.
If you are thinking of selling and want to get your house under contract quickly and for top dollar, it may be worth investing a little in your home However, make sure you invest correctly to get the “best bang for your buck.”
Average Regional Remodel Costs vs. Value
Contact the Raegen Johnson Group at 602.499.3175 for a market analysis. This will help you determine if it is worth updating or not.
*Information from the Cromford Report