Here is the monthly market report for the period ending January, 2011.
The first market indicator I will be looking at, as usual, is the Distressed Property Analysis
January statistics saw a slight shift of 2% -- a 2% increase in the number of closed short sales and a 2% decrease in the number of foreclosure homes that closed. The percentage of traditional/non-distressed sales remained the same at 30% of closed sales. Sellers and buyers need to monitor this trend to see how the banks respond in 2011 AND how they treat the shadow inventory that currently exists but has not yet been made available to buyers. Shadow inventory are the homes that are in foreclosure, but the banks have not yet introduced into the market. As banks make decisions on when to re-introduce foreclosed properties, it will be important to monitor the number of homes available for purchase. I will continue to monitor this segment of the market closely as it continues to be the most volatile.
Closed Sales Analysis
Sellers: The month of December showed an amazing 22.3% Decrease in the number of closed sales over the prior month. This is the highest number since October of 2010. Although this is a large decrease, it is important to know that this follows the same trend of the prior 2 years … the number of sales tends to show a drop in January due to the holidays and slow down in buyer activity. As foreclosure properties begin to enter the market, it will be important to watch the impact they have on the number of closed sales in February and beyond.
Buyers:
For buyers, this means that fewer buyers closed on a home in January; however, all indications are that buyers are becoming increasingly active in the month of February. This could mean more competition for the most desired homes. Investors continue to find the Phoenix housing market very appealing. With cash buyers still in the market, buyers who require financing need to consult with their real estate professional to make sure their offers are competitive.
New Listings Analysis
Sellers:
As is typical for the month of January, last month saw a dramatic increase of 30.2% in the number of new listings that entered the market. This means there were 10,887 NEW properties available to buyers – they could be traditional sales OR they could be distressed sales. It will be important to watch this statistic to see how sellers introduce new inventory in 2011.
Buyers:
This is important news for buyers, as it means there are still more homes entering the market, as is normal during this time of year. It is very important that you continue to spend time with and listen to your real estate professional to develop your strategy for succeeding in a market that is constantly changing. Be prepared: as more homes enter the market, there will more options, but there still may be more competition for the best values.
I keep up with the numbers, so if I can provide you with any other information, please do not hesitate to call.
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