Located 12 miles southeast of Phoenix, Mesa is the third-largest city in Arizona with a population of about 450,000 and growing daily. But with competition from new homes, among other factors, existing home sellers have a problem if they want to sell a home in less than stellar condition.

"Affordable housing is one of the attractions to Mesa," says Realtor Jeanne Bryson. "Mesa's shopping, recreational, educational and cultural amenities are some of the most extensive in the Valley. Many "snowbirds" migrate to Mesa in the winter months to enjoy the sunshine, golf courses and desert living."

She continues, "Most of the new home building is in North Mesa and East Mesa. In central Mesa, the average sales price for September 2002 was $114,923 with 181 homes sold, with an average of 57 days on the market. East of Gilbert Road, to Power, the average sales price was $136,669 with 244 homes sold, with 67 average days on the market. North Mesa had 45 homes sold, average sales price of $207,633, and average days on the market of 78. East of Power Road, the average sales price was $132,563, with 102 homes sold and an average of 80 days on the market. Sellers got an average of 98 percent of their list price.

"Overall, the big news is low interest rates," Bryson says. " According to Frank Nothaft, Freddie Mac chief economist: "Today's low rates are very beneficial to potential and current homeowners, who are applying for mortgages for both purchase and refinance at unprecedented levels. As a matter of fact, we are not only forecasting total home sales in 2002 will exceed last year's volume to reach an all-time record number, but also that mortgage rates will average only slightly above current levels in 2003." This is good news for homesellers, homebuyers, and our local economy in general and makes for a very exciting real estate market."

Explains Team Edwards, "Sales in Mesa resale market are going well due to less homes for sale, but new-build homes are selling quickly. Homes, especially in the $200,000 range seem to be selling fast with the low interest rates, as are those in the $130,000 - $150,000 range. Buyers will find some good selection of properties that may have been on the market for more than the usual time. Investors are encouraged to look in this area. We also encourage buyers to look for some exceptional homes for lower than usual price." P>Sales are slowing, but prices are increasing.

"Mesa slowed from 2,190 to 2,170 recorded sales, while the median price increased from $126,000 to $132,000," says Realtor Pat Hune. "The townhouse/condominium market decreased from 535 to 505 sales, but the median home price increased from $84,900 to $87,950. Continued layoffs by high-tech companies like Intel, Motorola and Honeywell will likely increase the number of homes for sale in the East Valley and decrease the number of highly compensated potential home buyers.

She advises, "The bottom line is if you are trying to sell a $200,000+ house, it cannot have any "objections." Those objections include backing up to a busy street or freeway, close to power lines, outdated interior decorating or not being maintained. If the tile is robin egg blue, there are 4-5 colors or carpet or types of tile, the paint is dingy or specialized it will be a hard sell. The other issue with far East Mesa is the horrible commute. Recently there were 17 accidents in less than 24 hours on 60. The other problem in East Mesa is the competition from new homes. Why buy a home with problems when you can buy a new home for the same price and get it just like you want it? The phrase we Realtors use is 'price solves everything.' If the seller is not willing to update or repair the home then the price must come down."

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Published: October 8, 2002

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