The outside temperatures have finally cooled down but our local real estate market seems to be heating up. Unlike the uptick that we saw last spring when the First-Time Homebuyer Tax Credit creative a false sense of growth, the data now shows real positive changes. Since January of this year, the volume of active listings has consistently declined while the number of sales has increased. Sales peaked in May and June of this year and they have remained strong going into the fall. In August, 46% of single family homes on the market sold within 30 days of being listed, compared to January of this year when only 32% of homes sold within that same time frame.
I am consistently seeing multiple offers on properties listed below $250,000 and that remains where the bulk of the activity exists. It is true that many of these sales are going to investors. In the past, investors were part of the problem as so many people jumped into real estate with little money down and had no incentive to keep the properties when the market declined. Now investors are paying cash for properties - in fact 40% of all sales recorded by the Arizona Regional Multiple Listing Serivce in August were all cash transactions. Investors and individuals are moving their investments out of the volatile stock market and seeking refuge in something safer and more tangible. After long five years it seems that our Cinderella market may finally be headed for the ball!
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails And Paths Premier Properties. He is also an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com .
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