I’m not sure if it’s because of the blimp I watched circling the FBR Open last week or because of the planning we are doing for the 2009 John Hall & Associates MDA Golf Classic coming up on May 11th, but golf has been on my mind quite a bit lately. This being the most popular time of the year for local golf courses, I thought it would be appropriate to research some statistics on Phoenix golf course homes.
Whenever I do statistical research I like to start with all the homes in the group and then break it down to get a better idea of what is going on. (All data was compiled from ARMLS using the “Golf Course Lot” feature code.)
Looking at all of the golf course properties in ARMLS showed me Phoenix is coming into the most active golf course home buying period of the year, spring! If you notice the January 2009 figure, we are starting this year slower than the last 3, but as history shows – expect an increased volume for the next 3 or 4 months. Since golf course homes in Phoenix tend to be a little pricier, it’s not a big surprise the volume has gone down. Most of what is selling these days is the lower priced homes. So let’s take a look at the average sales price for these homes.
Like the entire Phoenix real estate market the average sale prices of just the golf course properties are coming down too. September 2006′s value of $645,000 compared to September 2008′s value of $425,000 shows a $220,000 reduction! Can you hear the incredible opportunity knocking?
At the January Kick Off Seminar, Jim Sexton analyzed what effect REO’s were having on the entire market. (Some agents also used those charts on their websites.) Since it was such a telling picture, I decided to chop this group of homes into REO and NON REO’s to see what happens…
Like the entire Phoenix real estate market, REO’s are having quite the impact on golf course properties as well. REO’s make up only 5% of all golf properties listed for sale, but they make up 43% of the homes sold! If you have a property listed on a golf course I hope you show your sellers this kind of information. It is incredible that NON REO golf course homes have a 33 month supply compared to the 2.5 month supply of the bank owned ones. These numbers are for the entire Valley of the Sun – I recommend breaking them down to your specific communities to see if they compare. You’ll also want to look at the price difference between the two.
With both REO and NON REO properties there is a disconnect between what is listed and what is selling. It’s about a $400,000 difference for the non bank owned homes and about a $150,000 difference for the ones that are bank owned. The bank owned properties are priced closer to where today’s buyers are buying. Non bank owned properties should take a lesson from the banks on how to properly price homes to sell in today’s market. One phrase I heard on the NAR MP3′s is “Current Market Value”. Do you think your sellers perceive a difference between their home’s value and their home’s current market value? While the difference in those values may not be easy for sellers to swallow, this is extrodinarily good news and a golden opportunity for buyers!
If you are not a real estate agent and are looking for a good deal on a golf course property – we can help. If you would like to search all the golf course homes in Phoenix follow the link.
With real estate opportunities for every budget, isn’t it about time you looked into relocating to one of Arizona’s numerous golf communities located either inside or out of the Phoenix metropolitan area?
I just subscribed, keep the good stuff coming!