I didn’t forget to write my Phoenix market report on the first, but I was sidetracked with a quick trip to MARS. Stay tuned for more on MARS from every source. Check our blog, aaronline.com, or ADRE’s website for MARS announcements… yes even if you checked them last week. I guarantee you there are new announcements posted. So many changes involving short sale disclosures in the last 30 days. What a challenge to educate the agents!
Hey this is a Market Report. February had 7060 closed transactions. Plus 8% from January 2011; plus 7% from February 2010. Also to be noted 2/11 had the 2nd most closings for a February of all time; previous #2 was 2/10; 2/5 is the #1 February. Prices are appearing to stabilize, although that may not be the right word. They certainly aren’t dropping like they did in the 3rd and 4th quarter last year, when the market was recovering from the tax credit going away. Median price stayed the same-$110,000, average sales price dropped less than 1% to $155,735; and price per square foot rose less than 1% to $81.68. Overall not too bad considering REO’s continue to make up 46% of all sales-3265 (Avg. Sales Price $109K); and Short Sales are 22% (Avg. Sales Price$147K) of February’s closings-1521.
Other trends to watch are Pending Sales which are up 13% since Feb 1st ;Active listings which are down 5% in the same time period; and Short Sale activity in the next 30-90 days. I am concerned with these new MARS Disclosure requirements and the impact they will have on closing Short Sales. Fearful agents usually don’t venture into the unknown, i.e. how to comply with MARS disclosure requirements. This will probably result in fewer Short Sales closing until all Short Sale Negotiator questions are answered.
But let’s go back to prices and overall market activity and get Tom Ruff’s opinion. Tom is President of the Information Market and he says in his latest newsletter:
I’m starting to see a bottom forming: sales volumes are up year over year, new notices are declining, pending active notices are declining, higher prices are being paid by investors at auction, and large hedge funds are taking a close look at our market and are prepared to hit the ground running. As for Maricopa County median prices on resale homes; December, January, and February were all $115,000. REO inventories appear to have leveled. The numbers that made us pessimistic in July are the same numbers that are now making me optimistic.
Tom –Are you reading my e-mail or just forming my thoughts? I couldn’t have said it better and I like your vision.
[...] Jim Sexton, owner and designated Broker for John Hall & Associates, gives a quick update for the past month, February 2011. [...]