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Great News in the Phoenix, AZ Housing Market!

By
Real Estate Agent with Keller Williams Arizona Realty

Courtesy of Barb Savoy-Pacella, ABR, CHMS ~ CEO, Keller Williams Arizona Realty

www.PacellaGroup.com

There is some great news in our market!  CNN announced that Scottsdale, AZ was named one of the top 5 cities for fun and affordability in the world!  As a native of Scottsdale, I would have to agree!

The secret must be out because the Scottsdale Luxury Home Tour also announced that the level of inventory has dropped so low, that they will no longer be able to tour twice per month, and will scale back to touring once per month, in order to have new inventory to introduce to tour participants!

The curiosity in the market lies in the law of supply and demand.  Our supply has shrunk to near record lows (the only years with lower levels of inventory were 2004 and 2005), however, prices are continuing to see slight declines.  The law of supply and demand would tell us that with supply shrinking, and demand expanding, we should be seeing price increases, however, I believe that the level of distress in our market is putting pressure on pricing.  For as long as there are sellers who will not be receiving net proceeds on the sale of a property, the key objective will be to get the property sold quickly in order to cut the loss from the balance sheet, hence pricing the property slightly lower than the other homes on the block.  The good news is that some of the banks holding lender owned properties are taking notice of the number of offers they are receiving per property and beginning a slight upward trend in pricing.  A bank owned listing in our office received 43 offers last week – yikes!

It’s been nearly 90 days since we have taken measure of the level of distress by city.  The table below illustrates the level of equity versus distress on currently active listings by city, and the percentage of change over the past 90 days.  It appears that the cities with smaller percentages of distress are seeing slight increases over the past 90 days, versus the areas of greater distress seeing slight decreases.  The exception to that would surprisingly be Surprise!

City

% Equity Sale

% Short Sale

% Foreclosure

% Change in Distress inventory over 90 days

Anthem

47%

47%

6%

-3%

Cave Creek

61%

31%

8%

-4%

Chandler

36%

51%

13%

0%

Fountain Hills

71%

22%

7%

+6%

Gilbert

36%

53%

11%

-2%

Glendale

30%

51%

19%

-3%

Mesa

37%

44%

19%

-1%

Paradise Valley

82%

15%

3%

+2%

Peoria

38%

47%

15%

-4%

Phoenix

34%

47%

19%

-1%

Scottsdale

67%

27%

6%

+1%

Surprise

36%

50%

14%

+4%

Tempe

39%

45%

16%

+2%

 

 Listings Pending Sale are12,006.  That is a decrease of 8  pending sales compared to last week.  It will be interesting to observe the pending levels into September and October.  Listings that are active with sales contingencies account for an additional 7,904 properties.

Current Conditions in the Phoenix Market:

  • There are 15,601 single family detached listings, currently active in MLS.  That is a decrease of 94 listings from last week.  This represents the twenty-ninth consecutive week of decrease, which represents 7 consecutive months.  
  • There are 19,755 total listings currently active in MLS, which includes condos, patio homes, townhomes, and lofts.

For additional information, or to view homes for sale, visit www.PacellaGroup.com

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