June home sales in the Phoenix metro area surged to 11,125 units sold, the highest number of transactions in a decade, according to a new report released by the Arizona Regional Multiple Listing Service. The June number eclipses even the sales figures during the 2005 housing boom. June sales also were nearly 20 percent higher than June 2010. Active listings in Scottsdale are at the lowest in 2 years; Scottsdale's June inventory was at the lowest month's supply in 2 years.
Below is data from the Cromford Report, a highly-regarded real estate market report. The Cromford Report provides detailed information to track the history and current status of the Greater Phoenix residential resale market and offers insight into its future direction.
Article from the Comford Report News –
Here at the Cromford Report, we only deal with facts and figures, not beliefs, so here is the market update.
Sales - We are currently recording 9,814 sales in May. This is up 3.5% over April and up 10% over May 2010. This is a very strong sales total because in May 2010 sales are not being boosted by the government bribe (sorry, tax credit) that applied in 2010 for buyers of owner-occupied homes.
Pending Sales - At 13,268 on June 1, pending sales are down 0.4% compared with May 1 but up 6.7% compared with June 1, 2010. Again an extremely strong indicator of demand. In 2010 demand fell sharply during the summer after the tax credit expired, but there is no sign so far that the same will happen in 2011.
Active Listings - At 31,346 on June 1, active listings are 9.4% below May 1 and 23.3% below June 1, 2010. Supply is clearly falling fast. However this understates the situation because a large proportion of the active listings already have a contract against them. In fact there were 7,737 AWC (active with contingent contract) listings as of June 1, 2.6% higher than the very high level we saw on June 1, 2010. If we exclude these AWC listings, we have only 23,609 active listings, down 12.7% in a month and down 28.8% compared with last year. This is almost 60% down from the peak of October 2007.
Supply Versus Demand - The average months supply (active listings divided by monthly sales rate) for the period Jan 1, 2001 to June 1, 2011 is 5.9 months. Right now we have a 3.2 month supply. Yet we read everywhere that there is a "glut of foreclosed home on the market". What we are reading may have been true in November last year. It is not true now. In fact available supply is really even tighter than this. If we only count active listings that don't have a contract the months supply number drops to just 2.4 months. Anyone who thinks this is a "glut" is not living in the real world. They should just ask anyone who is actually trying to buy a home right now. Competition is intense, and not just for bank-owned homes and trustee sales. It is also heating up for short sales and normal listings. If you are trying to buy a home that is at all desirable and is priced at market or below, expect multiple bids. If you are a seller, then you only need to price realistically and your home will sell quickly.
Interested in buying or selling a home in Scottsdale or the surrounding areas? Contact me today.
gwen.kimbrell@scottsdalerealestategroup.net
480.882.8030
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