Each list of homes for sale offered by brokers, home builders and other sellers in the West Valley in Arizona is increasingly containing smaller homes, as more buyers prefer homes that they can pay and maintain easily. The West Valley covers the communities of Avondale, Buckeye, Goodyear, Litchfield Park and Tolleson.
Additionally, more buyers now shy away from large houses with extra rooms they do not need. With the difficulties brought by the recession into the lives of Americans, people now are practicing frugality – buying and using only what they need and saving as much as they can for the rainy day.
According to Pierrette Tierney, sales marketing executive of the Phoenix unit of home builder Taylor Morrison, said that the firm has shifted from building two-story houses to ranch-style homes, which are more typical in Arizona. Taylor is building homes at Sarah Ann, Surprise Farms and Sycamore Estates in Surprise, Roosevelt Park and Del Rio Ranch in Avondale and Estrella and Canyon Trails in Goodyear.
Standard Pacific Homes, which is building houses in Avondale, Goodyear and Waddell, has also been offering smaller houses with bigger yards.
The drop in prices is also being seen in each list of homes for sale released by builders and brokers. In Pinal and Maricopa counties, the median sales price has dropped by 14 percent from December 2008 to $184,181 in December 2009.
According to RL Brown of Phoenix Housing Market Letter, the drop in prices reflects more the re-engineering of homes into more practical designs than price discounts. Brown said that builders are no longer constructing large houses with granite countertops that were standard offerings during the boom except in high-end subdivisions.
Brown said that home builders also had to compete with much lower-priced foreclosures over the past two years. The median sales price for resale homes in November last year was $129,000, attracting more than four-fifths of home buyers last year.
Out of 85,765 houses sold in the area from January to November in 2009, only 9,913 units were new homes. However, sales of new homes improved in November, with a total of 1,312 units sold, much higher than the 713 new houses sold in February 2009, the lowest sales level in 2009.
Typically, according to Brown, 60 percent of buyers prefer the lower-priced foreclosures while the rest choose units from list of homes for sale from home builders and brokers selling new homes.
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