Courtesy of Barb Savoy-Pacella, ABR, CHMS,
Keller Williams Arizona Realty
My obsession with foreclosure inventory, or lack thereof, and its effect on pricing continues to consume me!
There are currently 97 HUD owned homes actively being listed in MLS. That is a 91% decrease from 1,114 at this time last year! Notices of Trustee sale (foreclosure) are down 59% from the same time period in 2011.
As we have established previously, 5.5 months of supply is considered to be a balanced market with supply above 5.5 indicating a buyer’s market, and supply below 5.5 indicating a seller’s market. Currently, we have a 3.6 month supply of inventory Valley wide, which includes homes that are short sales under contract, but waiting on lender approval.
I have mentioned many times those dark days of late 2007 and early 2008 when I would hold my breath before looking at inventory, which was approximately 56,000 active listings, and absorption, which was under 5%. Today, inventory is 18,562 active listings, with a 54% absorption rate, meaning that half of the houses on the market are selling each month.
The last time that we have seen overall inventory this low was in October of 2005. Do we all remember what was happening in October of 2005? It’s happening again, right now. Most homes that are in good condition and locations are receiving multiple offers, if they are priced appropriately. Our buyer clients are always shocked to discover this during the consultations because the media is not broadcasting the information. It’s the best kept secret in town!
As a result, the median home price is currently $117,000 an increase of $7,000 from the same time period last year. We do have our neighbors to thank for much of our progress. Out of state purchasers has risen to 25% with Californians leading the way, followed by Canadians.
Listings Pending Sale are up with a total of 10,088. That is an increase of 532 pending sales when compared to last week. Listings that are active with contingencies (short sales with an executed contract that are awaiting approval from the lender) account for an additional 6,952 properties.
Current Conditions in the Phoenix Market:
* Inventory is continuing to melt. There are 14,545 single family detached listings, currently active in MLS, which is essentially no change from last week.
* There are 18,562 total listings currently active in MLS, which includes condos, patio homes, townhomes, and lofts.
For additional information, and to view homes for sale, visit www.PacellaGroup.com
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