Where is the greatest distress in the Phoenix Market?
With only a few weeks left in the calendar year, it appears as though Phoenix home sales for the year will finish on pace with 2009.
With the arrival of the holiday season, we anticipate a slowing in sales as people tend to focus their attention away from their home search and more on family and celebrations; but remember that there are serious buyers who will be buying, regardless of the season.
This is the time of year when I set less focus on months of inventory and absorption and more on levels of distress which can cause price erosion. It's no secret in this market that buyers want a bargain, so it's no surprise that regardless of the fact that REO active inventory as a percentage of market share has been decreasing, REO sales per month out-pace short sales and equity sales in nearly every Valley city.
The total percentage of distress (short sales and REOs) by city for active inventory is as follows:
Anthem ~ 70%
Carefree ~ 22%
Cave Creek ~ 43%
Chandler ~ 64%
Fountain Hills ~ 29%
Gilbert ~ 68%
Glendale ~ 75%
Paradise Valley ~ 21%
Peoria ~ 67%
Phoenix ~ 67%
Scottsdale ~ 35%
Surprise ~ 66%
Tempe ~ 53%
Once again, this illustrates one of the reasons that the Northeast Valley has been slower to see signs of recovery than other areas. The Northeast Valley has had less distress and is not seen as the "bargain" that other areas have been targeted for.
The answer to the burning question, "where is the greatest distress in the Phoenix market," would appear to be Glendale.
Current Conditions in the Phoenix Market:
• There are 32,032 single family detached listings currently in MLS. That is a decrease of 327 listings over last week and the second week in a row of a decrease.
• There are 39,462 total listings currently active in MLS, which includes condos, townhomes, patio homes and lofts.
For information regarding specific communities, or answers to your real estate questions, please visit www.PacellaGroup.com "contact us." We would be delighted to assist you.
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