Once again building the Phoenix real estate market report first thing on the first of the month produced some surprising results. The number of closings looks too high, especially the number and percentage of short sale closings. Even though I think these numbers will change, I’ll report them as I see them on 7/1/11.
June 2011 had 10,509 closed transactions; highest number of home sales from any June. In fact, it happens to be the highest number of home sales from any single month ever, previous high 10,250. The Arizona Regional MLS (ARMLS) has reported +10,000 sales only 3 other times: 6/04, 6/05, and 8/05. This is the first time over 10,000 in almost 6 years.
Phoenix Market Trends
Looking at recent Phoenix market trends, June 2011 sales volume increased 7% over May 2011 and by 13% over June 2010.
Fortunately in early July, we have good news on the price front as well. Both the average and median home sales price increased month over month 2% and 3% respectively – $161,000 and $111,000.
Since we have 6 months in the books, I looked at the year to date comparisons 2011 vs. 2010 and 2011 vs. all-time. Remember 2010’s number of transactions were approximately 92,000 which ranked fourth highest home sales all time. Greater Phoenix’s highest year with 104,700 came in 2005. Well, 2011 is off to a very strong start with 53,501 closings YTD. That’s 11% higher than 2010′s numbers and 1% off of the record setting 2005.
Great News! Now Really is the Time to Buy!
I know it is time to buy! But over two years ago we defaulted on a home loan in hopes that a certain lender (not going to name the Bank of this Country) could help us reduce our payments. It didn’t help so we ended up short selling which took another 13 months until it closed. In a nut shell, we are just now looking at one year of having a short sale under out belts. Now rent has been going up due to the fact that it is becoming a renter’s market. My question…. if we can prove that we can easily make an $1100 monthly rent payment, how can we get a loan on something (even a nice little condo) that would bring our payment down to $700-$800 dollars? Or are we just going to be stuck on the wrong side of the real estate see-saw????? I’ve heard of hard money loans, but is this feasible or are there other options?