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Home sales up! Still a great time to buy a Phoenix home

By
Real Estate Agent with Sterling Fine Properties AZDRE# BR553129000

Existing (or non-new construction) homes sales increased 12.3 percent in December 2010, coming in well above most analysts' estimates and marking growth in five of the final six months of last year. This is according to data released today by the National Association of Realtors (NAR). The full press release can be found here.

According to the release "existing home sales rose 12.3 percent to a seasonally adjusted annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9 percent below the 5.44 million pace in December 2009."

These numbers offer solid, data-based support that sales are on the upward trend. December was a great finish to 2010 which was full of some unusual real estate industry activity such as the homeowner's credit which expired in April, insanely low mortgage rates and the foreclosure freeze. What a year! Analysts anticipate that this upward trend will continue as job growth gains traction and more people opt for homeownership due to continued low mortgage rates and overall affordability.

NAR also reported that "the national median existing-home price for all housing types was $168,800 in December, which is 1 percent below December 2009." At the same time, "distressed homes rose to a 36 percent market share in December." Given the increase in distressed properties, it is actually quite surprising that home prices only decreased by 1 percent. Distressed home are typically discounted by 10 to 15 percent relative to traditional homes. Therefore, it is more likely that we are experiencing a stable flat trend with home prices. Short sales and foreclosures will continue to impact numbers into 2011 - just something to be aware of.

Other interesting tidbits from NAR's findings:

In December,

  • Investors accounted for 20 percent of transactions
  • All-cash sales were at 29 percent up from 22 percent a year ago
  • Single-family home sales jumped 11.8 percent
  • Existing condominium and co-op sales surged 16.4
  • Existing-home sales in the West surged 16.7 percent

Read more about "Home sales up! Still a great time to buy a Phoenix home," at MyPhoenixmls.com

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I specialize in selling Phoenix real estate -- Scottsdale homes and Phoenix homes, including Phoenix short sales and bank owned homes. To see my listings and learn more, visit www.MyPhoenixMLS.com.

MyPhoenixMLS Real Estate

 

Comments (1)

Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

Good news is great. Has your median price increased much?

Jan 21, 2011 02:15 AM