Question from Homeowner:
"Mary, I am concerned by the sudden increase in homes for sale in Wigwam Creek North?  Will he have another sudden drop in the market like we did in the past?"
Hi Homeowner,
I saw your question regarding the Wigwam Creek market so I ran the numbers.
Currently 18 homes are for sale in Wigwam Creek North. When I sift thru the taxes on these homes, I can see that 12 of these owners bought the house as an investment when the prices were lower. These owners are trying to make a substantial profit. The 6 remaining owners are trying to break even or minimize their loss.
In the past 30 days, 5 homes have closed escrow in Wigwam Creek North. This means we have 3.6 months of inventory in Wigwam Creek North. This indicates the area is still in a seller's market. As we move closer to the 6 month of inventory mark, the seller has less and less bargaining power. Around the 6-7 month inventory level we consider it a balanced market.
Why have more homes come on the market? The price per sq ft in the surrounding communities, as well as in Wigwam Creek North, has been steadily rising. Those investors which may have over extended themselves, may now be looking to sell off some of their inventory because they are happy with the current profit margin.
As prices rise, houses will also stay on the market longer because the pool of buyer lessens. We have had tremendous growth in the number of sales and the rise in home values in the last year in the west valley. Goodyear sold the highest number of homes in the valley in the last quarter. Investors are seeing the wave and wish to take the ride. With the increase in the volume of sales, we have not seen a drop in value and we do not expect one. This is due to the number of new residents moving to the valley due to our economic growth. Home builders that suspended building for years, are now finishing out the communities they started. We are seeing an explosion of growth once again in the west valley.
Mary Drefs
Keller Williams Realty Professional Partners