The Case-Shiller home price index was released today stating that 4 years of home values gains have been wiped out.  That is readily apparent in the Phoenix area where home prices have declined at such a rapid pace that appraisers are starting to use active listings as comparables.  Yes I did say active listings.  Active listings being used as comparables, it makes ones head spin.

 

The reality is that it is what it is and there is not much we can do about it at the moment except keep on keeping on.  For those of us working in these hard hit markets we just need to be that much more vigilant about what is happening in the areas where our listings are and where our buyers are purchasing.  If a slew of listings hit the market for less than what we wrote a contract for there is the possibility that an appraiser will use them, if not in the appraisal in the appraisal review done by the lender and that it may come in for lower than we expected.

 

I have decided that this market is really a great thing in some ways.  It is making us better agents.  Those of us that survive and thrive in this challenging market will come out the other side with a focused determination that we would have never had otherwise.  That is not a bad thing by any stretch of the imagination.