Paradise Valley median house prices are definitely off their low point. The bottom for Paradise Valley median house prices according to the chart above looks to be very clearly mid 2011.
What Does That Mean For Future Prices?
Well the simple answer to that question is no one knows which way prices are going to head in 2012. But what we can say is that if median house prices do not fall in the next two to three months we do have a stable bottom. History tells us the market should continue on with growth from here. Not necessarily stratospheric growth again like the 2002 to 2006, but some normal growth.
What Does This Mean For Home Buyers?
For the first time in a while be prepared for the following.
- A limited supply of distressed properties. There are only 28 distressed homes fully active for sale in Paradise Valley as of today.
- Multiple offer situations. With inventory low, buyers are well aware of what homes offer better value for money. Expect to see multiple offer situations on some of these homes. I would stop short of saying bidding wars at this time, but the days of well priced homes getting one low ball offer is probably passed.
- Sellers with more confidence. Seller sentiment is firming up in PV. I have talked to a number of sellers who feel the market is moving more in their favor as we approach 2012.
As always the advice for buyers is if you see your dream home don’t be too blinded by numbers. Predicting the real estate market is a bit of a lonely task. If you love a home now is an ok time to put in a fair offer without too much panic. On the flip side of that there is also no panic to buy, prices may move up into 2012 but I don’t see anybody predicting a fast pace of growth.