Phoenix Area Market Statistics: July, August, and General Trends

Phoenix area market statistics for July and August have been published.  The overall trend in the market is that we saw a large drop off in Phoenix area sales after the tax credit expiration however sales did increase in August.  The sales increase was fueled by affordability and low pricing as well as historically low interest rates.  Sales increased by 5% in August (7,358) over July (7,009). 

The median home sales price decreased over the same time period.  This decrease was expected once the tax credit for first time and move-up buyers expired.  These tax credits had increases demand for homes in certain price points (primarily under $200k for first time buyer and under $400k for move-up buyers).  At these prices the tax credit was in effect "built in" to the price of the home and now that the tax credit has gone away the price points have decreased.  Median home sales prices went from $125k to $119k between July and August. 

Phoenix Area Real Estate Stats:

-          In addition, after the tax credit went away, sales dropped 27% nationally and 24% in the Phoenix Metropolitan area.

-          ARMLS showed 21,191 properties going under contract in March and April compared to 13,801 for the following two months of May and June, a difference of 7,370 contracts.

-          77% of July sales were under $200k, 79% were under $200k in August.

-          63% of July sales and 67% of August sales were either bank owned or short sales. 

July and August purchase methods:

-          Cash accounted for 41/43% of sales in July and August, respectively

-          FHA 26/25%

-          Conventional 28/28%

-          VA 4/4% 

Some interesting historical data:

-          The most ARMLS residential sales in a month were 10,252 of June 2005, with a median sales price of $250,000.

-          The least ARMLS residential sales in a month were 2,912 of January 2008, with a median sales price of $220,000.

-          August 2010 residential sales were 7,358 with a median sales price of $119,000. 

*** Data compiled for these statistics primarily comes from the Maricopa county tax records and Arizona Regional Multiple Listing Service (ARMLS).