Queen Creek Real Estate - What's Changed in a Year and a Half?
Back in June 2007, I wrote the following post highlighting how the new home builders were slashing prices in order to win sales. At the time, the impact of the price reductions put existing homeowners (and their former customers) in a bind and locked many into their homes at a time when they would likely have preferred to sell. Here's the original post:
If you really want to understand how the home builders can affect a market around their sites, then you might find this interesting. In reviewing activity for an area around a listing I have in the Queen Creek area, I looked at the total number of sold properties since 1/1/07 for that community.
Of 30 properties that sold...
- 21 were new builds
- 8 were resale homes
There is plenty of resale in the area I looked at so there is no absence of resale homes to explain this (there were probably more resale than builder spec in this case). In essence, the builders have the ability to offer more square footage for the money (a lower basis) and undercut the resale market which is what is happening here.
The impact is that the builders make their sales at the expense of the resale market. Is this anything new? Not necessarily. What is new is that this market doesn't support this kind of activity very well in that this means more inventory builds up in the market as the sales activity for a given area falls to new homes. Hence, the new home builders are contributing to a situation that can't be good for the home market in the Valley overall.
Now, to update what has been happening in the Queen Creek real estate market since then, you only have to look at closed sales activity for homes for 2008. Here are the results:
For year, 48 homes have sold in the Rancho Bella Vista community in Queen Creek. Of these 48 homes,
- 29 were foreclosures
- 11 approximately were short sale related
- 1 was a corporate relocation
The impact of all of this is that anyone trying to sell their home in this community who doesn't have serious equity in their home, cannot sell unless they short sale or allow the property to be taken over by the lender(s).
One question here given the history. What would have happened with the extent of the foreclosures if the home builders were forced to slow down new build activity at a time when it was clear that adding more inventory to the market was a detriment. As well, did the lenders help to accelerate the price declines and the severity of those declines in this particular market location? Date: Tuesday, December, 23rd 2008 @ 10:15:13 AM
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