PHOENIX, AZ (3TV/CBS 5) — A Phoenix-area realtor reports that iBuyers own nearly 13% of all listings in Maricopa County, making it much more difficult and expensive for first-time homebuyers. The reach of tech corporations can be felt at a gated community near Thomas Road and 32nd Street, where an iBuyer purchased a house for $600,000, $100,000 more than neighboring homes.
Valley real estate agent Greg Corbett said the indirect market manipulation is contributing to an expensive and tough search for local homebuyers. “It’s bad for any buyer who’s trying to compete with them,” said Corbett. Corbett has been analyzing iBuyers’ activity in Arizona. He said the businesses who once helped sellers for a price are now spending millions to have their place in an emerging market.
“They’re playing the market as if it’s a game. They intend on winning,” said Matthew Aguilar. It’s a game that Aguilar feels is fixed against him and many others in his situation who are paying $1,700 in rent for his multi-generational home and can’t get a mortgage for the rising costs of homes in Maricopa County. “I really don’t have a choice under the current system unless I see a large influx of cash,” said Aguilar. “Then I won’t be able to purchase a home.”
According to The Cromford Report, the average home sales price in September 2020 was $408,240. A year later, it’s $494,502.
It’s a difficult reality for many Arizonans who feel priced out of their own communities. Aguilar hopes local governments recognize the need for affordable housing. Meanwhile, Corbett suggests you wait until the market cools down before you buy. “Don’t chase anything right now. If things look like you’re paying too much for it, then I’d probably hold off,” said Corbett.
Copyright 2021 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.