There is (only) one bright sides to dropping Phoenix real estate prices. Value, affordability and great real estate deals. Wait, that’s 3. Oh well.

Yesterday, the Case – Shiller home price index of 20 major U.S. cities released a report that showed Phoenix real estate home prices dropped a record in July from the previous July 2007.  

Las Vegas and Phoenix , - remained the weakest cities, falling nearly 30% in the past year.

As a result of these major price declines for Phoenix, Peoria, Glendale, Fountain Hills and even Scottsdale real estate, home buyers are stepping off the sidelines and becoming interested in Phoenix real estate.

Phoenix Real estate buyers are looking for bargain basement prices and if Scottsdale or Paradise Valley homes become available at these major price discounts buyers are motivated.

Yesterday, I called a North Scottsdale listing agent about a brand new homes for sale in Scottsdale.  At first glance, seemed to be priced at nearly 50% below the 2005 Phoenix real estate market prices.

The Scottsdale home was a foreclosure home that was now bank owned (REO), not a short sale and being marketed by the Scottsdale Real estate agent as a lender owned home.

The home had been on the Phoenix real estate multiple listing service (AR MLS) for only 1 day. However, the Scottsdale real estate agent informed me that they had already received an offer.  Additionally, the Scottsdale real estate agent told me that he had received calls from other Phoenix real estate buyers and had two showings earlier in the day.

I called my home buyer and we drove to look at this luxury North Scottsdale home right away. As we arrived, there was another Scottsdale real estate agent driving away with a new home buyer. We looked inside the home and noticed that there was nearly 10 Phoenix real estate agent business cards on the counter.

Clearly, this Scottsdale real estate was a great opportunity as a real estate investment or a new home buyers.

By the way, as my home buyer were driving away, a Phoenix real estate agent was speeding up the driveway to show a home buyer this Scottsdale real estate investment opportunity.

I know these are challenging times for Phoenix real estate owners, Scottsdale real estate investors, and vacation homes in Paradise Valley and Fountain Hills, AZ.

However, a small silver lining to the fall in home prices is real estate buying by those who can get a loan.  In fact, the Case Shiller housing index reported that while Phoenix real estate is off 30%, the pace of the decline has slowed, particularly over the last three months.

As the above anecdote shows, when short sales, bank owned homes, lender owned real estate (REO‘s) are listed homes for sale in Phoenix, buyers are eager to not only look, but to buy.

In my opinion, the frenzy of Scottsdale real estate buying when prices are down more than 30% shows me that we are at , or very near, a real estate market price bottom.

Call me for a home tour of short sales in Phoenix, or bank owned homes in Paradise Valley, Scottsdale or Fountain Hills.

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Copyright © James Wexler *Scottsdale Real Estate Buyer Frenzy *

To learn more about life in Scottsdale and living in luxury communities in  Scottsdale , please contact, James Wexler (480) 221-8080 for your Phoenix | Scottsdale area Real Estate needs