Although the azcentral.com article I am linking to in this post does not specifically focus on the Downtown Phoenix real estate market, the same things are happening in Central Phoenix. Basically, bidding wars are back. In the middle of the worst real estate correction since the Great Depression, property values have fallen so far that buyers, especially investors are flocking back in to the market to scoop up deals. This is sometimes very hard for buyers to understand as they have heard about all of the good deals out there, foreclosures, auctioned homes, short sales, etc. Then they start making offers on properties and end up coming up on the losing end of multiple offers on the property. The reality is until/unless we get a new barrage of bank owned homes and short sales due to higher unemployment, we have probably hit the bottom of the local real estate market and we probably did that in April of this year.
Who knows what the future holds, but if you are thinking about buying right now, just don’t get your hopes up that you are going to be able to dictate much to Sellers.
Read azcentral.com article for a little insight into the current real estate market