It's all about the price right now

[Patrick Kaiser]

A few months ago, buyers preferred higher end finishes and were willing to pay a premium in almost all parts of town to see really nice stuff. This is in part what was driving prices up so wildly. Flippers were putting $100k into $300k houses and selling for $500k in neighborhood where that had previously been unheard of, surpassing highest comps by leaps and bounds. 

But now, price seems to be the only thing that matters. The tables have turned and turned quickly where the only thing that currently seems to be selling houses is the lower priced houses. OK finishes, better prices is what I'm seeing sell houses right now. 

Is that on track with what other people are seeing? I'm in Phoenix metro.

[Mike Dymski]

@Patrick Kaiser @Scott E.@Bob Okenwa and others.  I'm curious...are the factors that drove the major correction in PHX during the GRC still in place or is the market in a better place now and, if so, why?  I have my thoughts but don't want to lead the witness.  I'm making a major commercial investment in PHX.  I'm also interested in understanding how much of the rental stock (not related to RVs, mobile homes, or condos) is dedicated to seasonal snowbirds, where is most of it located (Mesa, Gilbert, Chandler), and what happens to those homes from Apr-Sep in the offseason.  My investment is building a hybrid apartment/hotel; so, I'm wanting to better understand what will happen in the summer months to rental demand in certain areas when the snowbirds leave and which areas will have a greatest impact (if even applicable) to help assess my site selection.  Happy to jump on the phone as this is a loaded question.