What is happening in the real estate market? Many of the properties being sold in the greater Phoenix metro area are vacant.  Approximately 17,000 homes currently listed for sale on the local Multiple Listing System (MLS) are vacant. This is more than half or about 55% of the total properties listed in the MLS. Interestingly enough the vacant homes are selling quickly as approximately 82% of the closed sales have been vacant.  This means that the “seller” is probably not buying. In many cases the “seller” is the bank who is trying to clear property off their books. Banks do not like to ‘own’ property.  So, where did all the sellers go???? Are there sellers that are turning in to real buyers?

Unfortunately there are the high number of home owners losing their property to short sale or foreclosure.  The resulting decrease in there credit score combined with the more stringent requirements to obtain a real estate loan in today's market, has greatly reduced the previous homeowners ability to purchase another home.

We are witnessing the classic supply and demand. They say you never know where bottom is until you are past it. For the past 3 years volume was high and prices came down.  But, the market appears to be on the rebound. The number of sales is up 50% from 2008 and 66% from 2007.  The volume of properties available has dropped from a high of  approximately 56,000 to 31,700 today.  Prices seem to be stabilizing for the past few months. The average home price is currently around $171,000 up from a low of $159,000.  The reporting companies are stating that the market hit bottom (lowest price)  in the late March /early April of 2009. The majority of buyers in today’s market place are first time home buyers or investors with cash. So if you are qualified or have cash, it is a great time to pick up a ‘good deal’.

Volume of Homes Sold by month

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