uying real estate???? Now that the market has gone down everyone is wondering when we have hit “the bottom”? Real Estate has always been a good investment, but over the last year the market has lost over 45% of its value in some markets. Even though the lending institutions are tightening their belts and lending has come to a stand still, we still are selling homes. Granted we are not selling at the rate we were back in 2004 and 2005 however I believe the worst is over. Skepticism has kept many qualified buyers out of the market until more recently and with the majority of bank reorganization over and foreclosures no longer dominating the market we should be on our way to a leveling then recovery.

The Scottsdale market is recovering nicely after the 45% market decrease over the past three years. Understandability about 50% of the market is still distressed properties. In addition another 15% of homes currently for sale are bank owned properties. With this solid inventory of distressed and bank owned properties the Scottsdale market is under a great deal of pricing pressure. What this means to you depends if you are looking to buy or are already a homeowner in Scottsdale. If you own a home in Scottsdale, prices will remain suppressed for the remainder of this year and some predict into next summer. If you are a new buyer, then you are in luck. Many homes that sold for $300k plus are now selling in the low $100′s.

Is there an end in sight? What needs to happen is not so obvious. Of course unemployment needs to fall and consumer confidence will pick up strength. After that the flood of foreclosures in Scottsdale should follow suit and turn into a small leak instead of its current flash flood status. We then need bank cooperation to reduce the amount of inventory on the market (currently 43,000 homes). This will be the first steps in seeing a pricing turnaround. It wont be easy but it will be quick once the previously stated items take place. Again Scottsdale real estate has always been a great investment and will be again soon. Until then, put your head down and keep working hard and it will all be back to normal before you know it.

httpv://www.youtube.com/watch?v=tm3IpFSfyzk

Luke discussing the tax effects of Prop 100 in the 2008 election.