The market inventory is slowly improving, though not quite reflected in these stats below. There were only about 5000 active single family homes in Maricopa County back in May. By the end of July, we were up just past 7000. Still nowhere near a balanced market, but a steady improvement in the right direction nonetheless.
Properties that are priced correctly are only lasting a few days on the market before they go under contract. If sellers weren't holding out for more offers at higher values, since they know they have the upper hand, homes would truly be absorbed within the first 24-48 hours after going live in the MLS.
Even though inventory is slowly improving, to land a home, bidding wars are still common place. As an example, I listed a home in the far west valley at the beginning of this month. List price was $379k for a 4bed/2bath/1738SF in good condition, but still in need of some renovations to get to todays standards. The accepted offer came in at $415k with $15k in low appraisal guarantees, or $36k over asking price. On the other end, I'm working with clients to purchase a "luxury" home near Scottsdale, we submitted in an offer on a $730k home for $783k with appraisal guarantees and a 1 month, no charge, leaseback to the seller and we still did not end up as the successful offer... crazy! In the $300k-$500k price range, the $20k-$35k over asking seems to be close to the right amount to secure a properly priced home, but in the $600k plus market it can be anywhere from $10k- $150k, making it very difficult to create a sound pricing strategy.
With all of that said, I still wouldn't shy away from the market and wait for the market to get more friendly. Since the beginning of March, I have helped clients close on 10 properties even with today's pricing and competition. As you can imagine the appreciation gains have been a huge perk as well, waiting would have just cost that much more in the future.
