Homes for sale in Phoenix increase slightly to begin November 2009

MLS listings in the Phoenix area were up slightly for the second consecutive month to begin November 2009 (highlighted in orange).  This is a contrast to the previous nine months when active homes on the market dropped a whopping 23,500 properties from 54,538 in December 2008 to 30,995 in September 2009 (highlighted in yellow). There are currently 32,351 active residential listings in the Phoenix area real estate market.  This includes both "normal" and foreclosure homes for sale.

This slight increase in homes for sale will do little to impact the demand in our current real estate market, especially for foreclosures. The Phoenix real estate market has averaged about 8,700 home sales in the six-month period from April through September 2009. Phoenix home sales for October are expected to be right around 8,300 properties. Much of this demand in Phoenix is due to affordable home pricing and the $8,000 tax credit. The $8,000 tax credit is currently set to expire at the end of this month, but the federal government is evaluating extending it into 2010.

Phoenix area foreclosures

The number of Metro Phoenix foreclosures increased to begin November 2009. The total increase was about 550 homes.  This includes both real estate short sales and REO property (bank owned homes).  Look for the number of foreclosures to increase further as short sales continue to be increasingly popular and banks have inventory they have yet to release.  The chart indicates approximately 38% of all active homes for sale over the last six months have consisted of foreclosure-properties (highlighted in blue).

My next post will look deeper into the foreclosure market and compare the number of short sales versus the number of bank owned properties currently for sale in the Phoenix real estate market.

Learn about the short sale process