Home prices in the Phoenix Housing Market took a slight step down in June 2013. After one year of steady increases the price per square foot dropped from $120 in May to $119 in June 2013. The price decrease can be attributed to normal sellers taking slightly less for their homes because foreclosure prices remained consistent. 
8,159 homes were sold in the Phoenix Housing Market in June 2013, down approximately 1,300 from May. 79.2% were normal sales and 20.8% were foreclosure type sales (see more details: Phoenix Home Sales and Housing Tracker. Foreclosure type sales are at their lowest point in the Phoenix Housing Market since January 2008. Foreclosure type sales occurred as follows:
- 722 bank owned sales (42.5% of all foreclosure sales)
- 978 short sales (57.5% of all foreclosure sales)
As a further point of interest 303 short sales were canceled while 978 were successfully closed. Essentially this translates into a 76.3% short sale success rate in June 2013.
If you're really into the Phoenix Housing Market this may interest you: the difference between normal sales and foreclosure sales has been right around $40 per square foot over the last few years (see: Foreclosure Prices versus Normal Prices). However, you won't find that kind of price difference for similar model homes on the same street. Rather, foreclosures tend to be more densely populated in certain areas of the Valley where prices are below the median home value. By comparison, more normal sales tend to occur above median home prices. As a further example, 42% of all sales under $100,000 in June in the Phoenix Housing Market were foreclosure type properties.
Phoenix Housing Market Active Inventory
June 2013 finished with 15,800 active homes on the Phoenix MLS, up very slightly from May. Only 1,435 homes, or 9.1% of all active homes, are foreclosure type properties. Foreclosure listings have not been this low in the Phoenix Housing Market since 2007 (See: Phoenix MLS Listings Report). Here is some insight on the current inventory levels from my Cromford Report subscription:
There are no promising sources of new supply for the Phoenix Housing Market:
- delinquent borrowers - already back to normal levels of delinquency
- pre-foreclosures - dwindling fast
- banks - not going to happen (they hardly have any left)
- investors - not going to happen (most homes are leased and appreciating nicely, no good reason to sell now)
- ordinary sellers - many still underwater and those who aren't are scared they won't be able find a new home because of the short supply
- new homes - permits are still being issued at only one third the normal rate in the Phoenix Housing Market
Finally, based on the price of homes under contract it appears July sales prices will be roughly at the same level as June, or about $119 per square foot.
See a slide show of our latest Listing: Homes for Sale in Gilbert AZ
Comments(0)