Phoenix Real Estate Market Explained

I really like the term digital curator.  There is so much information available on the web, it’s a valuable service to have someone find the good stuff and display it in an organized format.  I try to do that for you.  Today, I received and email from an agent who did it for me.  Wonderfully helpful.

No reinventing wheels around here…

Phil,

Here’s an e-mail I sent to some clients, who are just now realizing they have to pay above list price:

I’ve been reporting the changes in the Phoenix real estate market for a few months now.  Other agents are adding their observations too.

Phoenix homes have now had 7 consecutive weeks of increased median sales prices.  From a low of $162,717 in early April to this week’s $173,909, a price increase of almost 7% in less than 2 months!  The number of Phoenix home listings has dropped 30% since January.  More details here:

http://uglyhousephotos.com/wordpress/?p=9087

I analyzed the sales data from April for the entire Phoenix metro area.  A market with a 6-month supply of homes is considered a balanced market (buyer-seller).  February and before, we were seeing 9-12 months of inventory, a buyer’s market.  That number dropped to 5.2 months in April, with homes only down to 4.6; that’s a seller’s market; May will turn out even lower.  Charts & details here:

http://uglyhousephotos.com/wordpress/?p=9036

The LA Times reported on Sunday that Phoenix real estate went from bust to boom, with multiple offers now:

http://www.latimes.com/news/nationworld/nation/la-na-phoenix18-2009may18,0,7979477.story

This agent found that the available inventory of bank-owned foreclosure listings went from a 3.6 month supply a few months ago to only a ONE month supply today.  Today there are only half the number of available foreclosure listings we had 3 months ago.  That’s why we’re seeing multiple offers:

http://www.phoenixrealestateguy.com/sunday-stats-a-look-at-bank-owned-homes-in-phoenix/2306

This agent also found that list prices are starting to go up, not down:

(Article has been removed)

I hope this information helps explain why things seem crazy in real estate right now.

Thank you,

Leif Swanson, Realtor, John Hall & Associates