Phoenix Arizona Market Report for the period ending July 2012
Distressed Sales Analysis:
A bank owned/foreclosure home is one that the seller no longer owns – it has been taken over by the lender(s) who had a note on the home. Short sales are homes where the seller is negotiating with the bank to “forgive” a portion of the debt in order to avoid foreclosure.
Although the NUMBER of sales in July was a significant decrease over the prior month, the percentages of each category remained virtually the same. Bank-owned sales accounted for 14.1%, short sales accounted for 29.6% of the sales and “traditional sales” added up to 56.3% of all sales. Sellers and buyers need to monitor this trend to see how the market continues to respond to the current inventory.
Average Sales Analysis:
For the second month in a row, the average sales price for closed sales in Maricopa County
saw a decrease. The month of June showed a decrease in the average sales price from
$205,624 to $204,057, just under a 1% drop in one month. However, this remains the 3rd highest average price in the 36-month reporting period. Sellers should continue to watch this trend as they are pricing homes in today’s market. It is now more important than ever that sellers continue to price according to the market and understand how the current market will apply to your individual area and/or home. It will also be important to monitor the impact this trend begins to have on appraisals and finding qualified buyers at these higher prices.
For buyers, it is absolutely critical to be aware of this shift in the price of homes.
This decrease does not necessarily mean that buyers once again have less buying power than they did in the prior month – it could simply mean that higher-priced homes are not moving as quickly over the summer months. There is no doubt that the low inventory has created competition for the current inventory, and that this high demand is impacting prices. The $60,000 home is becoming a rare find! More than ever, you need to work with your realtor to make sure you have the best possible information regarding the market value of homes and to carefully monitor this trend to see how it will impact the availability, pricing, and terms associated with purchasing a home.
Closed Sales Report Analysis:
As is typical in the month of July, we saw a significant drop in the number of sales last month, dropping by 17.8%. The statistics show that we had 6,324 residential homes sell in the month of July in Maricopa County. It will be important to watch this trend over the next few months to see if we are following the same patterns of the prior two years that are analyzed in this report.
For buyers, this means that competition for homes still remains very high. Competition for the best properties has not slowed down and homes priced below $150,000 are selling for more than list price. What does that mean? Buyers will continue to see homes continuing to sell well above list price AND cash buyers being the ultimate winners in the bidding war. Buyers should continue to carefully work with their realtor to understand the market AND how they can compete with the market demand and other buyers who may be in a financial position that is more appealing to the seller.
Average Days on Market:
After several months of stability in this statistic, July continued the trend of the prior 3 months by showing a decrease in the number of days on market. July saw this number drop to 71 days,
the lowest in the 36 month period. Considering we were at 139 days a few years ago,
there is no doubt the current market is having an impact on how quickly homes are selling.
Well-priced homes continue to go under contract within a very short period of time. If a home isn’t selling in today’s market, there is no doubt that it is because buyers see the price as being too high.
Buyers beware! When inventory remains on the market for fewer days, it means that sellers
are continuing to have more success selling their homes. The lower the number, the less control a buyer normally has. The decrease in this number means that sellers are having great success in finding buyers who are saying “yes” in today’s market. Buyers need to be aware that competition for great homes continues to remain very high, especially in the lower price ranges. The importance of having a reliable lender AND realtor to guide you through this process has never been more important.
Would you like to know what is happening in your neighborhood?
Would you like to know the value of your home?
Do you need help deciding whether to sell or not or would you like to know if now is the right time to buy?