I agree…and as soon as those homes drop in price to at/below the median price buyers will begin to step in – until there aren’t any buyers left at that price point and the price drops further enticing another group of buyers into the market until inventory clears out.

Enjoy your website…

I’ve not said the pent up demand was gonna turn their market around. I said it was making itself evident in its impressive volume of REO sales. It’s a step, not a turnaround.

There are far more renters there now than before. Also, the buyers who will be looking at the homes priced slightly higher than the median, will begin buying next.

One step at a time. We’re on the same page, more or less, James.

The existence of pent up demand doesn’t mean the imminent end to the correction. Thousands deciding to jump off the fence and buy, does however provide empirical evidence of a fairly impressive shift in some of the public’s perception.

I respectfully disagree that there is enough pent up demand to turn the market in Phoenix. I agree that there is pent up demand. I don’t agree that there is enough pent up demand to support the over supply of homes on the market – and homes soon to be on the market through additional foreclosures. The fact is, Phoenix is seeing lower home prices.

If decreasing prices aren’t a sign of too much current supply, I’m not sure what would be.

Markets work and you see that through stable prices where supply = demand. Phoenix requires lower home prices because it certainly isn’t going to happen with the amount of “pent up” demand out in the market. I believe there is “pent up” supply.

Someone needs to turn off the home sale production line and focus on moving this inventory before we can even consider, for a moment, increases in prices. Hold on…

I was speaking of Phoenix, as you are. There are 10′s of thousands of folks in those three years who’ve come from other regions. They’re well employed. The area itself is now the #1 job creating county in the country.

Massive population increase + 3.5% unemployment = pent up demand. The supply? I agree. Still, buyers have been waiting so as not to jump ‘to soon’ timing the market. These REO’s have been around for a very long time, yet only now they’re flying off the shelves, often over asking price via multiple offers.

When pent up demand makes its move, it almost always goes for the bargain basement stuff first. Duh, right? That’s what’s happening there now. You don’t see it happening here right?

It’s affordable in AZ. Interest is relatively low. The down payments and underwriting are stricter, yet thousands sell monthly. If that’s not a sign of pent up demand, I’m not sure what would be.

Pent up demand was one of the bloodhound blogs infamous 21 reasons why Phoenix real estate will never go down . Published 2 years ago this month. Hows that turned out so far?

There is a pent-up buying demand that has been squelched by a sinking market. I know many people who are watching and waiting to make a move…

Please don’t infer that means we don’t think monster good deals aren’t possible via REO pathways, ‘cuz we do.

I’m wondering if the lenders holding REO’s in Pasadena are possibly looking to get ahead of the curve by softening now, instead of chasing what might be a lower bottom. I’d definitely test that if I were you.

Be very aggressive with your offers. What are they gonna tell ya? Go fish? They’re the ones with the problem, not you or your client. Since nobody’s buying them, it means you might be able to go in without competition and cherry pick.

Remember, lenders hate having the dang things on their books. Smart lenders are doing whatever they can to put them on your clients’ books.

I think you’re probably more likely than not correct in your conclusions. Sounds to me like you’re getting just a tad fine though in timing the market.

When you have some time, I’d love to see what else your crystal ball tells you. Mine’s cracked.

All kidding aside, the REO’s will keep coming and they will keep selling. The demand side in that area has been quiet while building all through the correction. Population growth plus very impressive job growth will, in the end, allow demand to begin to overcome even an ever growing supply.

Only the passage of time will tell. Don’t be a stranger, James.