Right now in most areas of the country inventory is low and buyers are fiercely competing for houses. In the Greater Phoenix area this is happening like never before!
Why is housing inventory so low? In late 2006 we had over 400 active home builders here in the valley. By late 2008 that number was under 20. Builders not only didn’t build much for about 5 years – they still aren’t. Yes, building permits are “way up†but not up enough to actually take care of the increasing population of Maricopa County. Not even close.
We have fewer houses for sale and prices are rising. It is common to have multiple offers on any desirable home. For those buyers saying “I won’t get involved in a bidding war†we need to point out that they may need to re-think their strategy. To avoid a bidding war a few things need to happen – builders need to be fully building (creating more supply, which will take years) and prices need to go up enough to dampen demand. Or you can prepare for the fight and buy at prices that still are a bargain by most any yardstick.