Phoenix Market Trends - Listing Success Rate as of March 2013

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Real Estate Agent with HomeSmart International AZ Broker BR030809000
https://activerain.com/droplet/SHR

Phoenix Market Trends - Listing Success Rate as of March 2013

 

The Listing Success Rate is indicative to the Real Estate market within specific transactional processes - however, this can definitely shed light on the specifics of the market in the Metro Phoenix area.  For example, there have been steady change in the REO (bank-owned) and Short-sale processes - yet, there has been a lot of consistency with regard to the HUD and Normal transactions within the Real Estate market in the Valley of the Sun.  

 

Listing Success Rate - March 2013

 

As this chart indicates, the HUD transactions have been consistent with regard to homes closing once listed in this category.  There are a few reasons for this - first off, these particular transactions are for first-time home buyers and the borrower must qualify for these types of loans prior to purchasing the home.  Secondly, there are specific guidelines as to what kind of property qualifies for these types of loans - the loan-to-debt ratio is much less tolerant and there are specifics that are required with these types of loans compared to other the other financial options open to some borrowers.  With all this being said, it stands to reason that once a person and home qualify for the HUD homes, they will most likely close.  This is not the typical find the home of your dreams and bid on it - this is more of a structured program - and, because of the programs strict guidelines, there are few people who start in this program and do not complete this program.  Hence, the Listing Success Rate being consistently between 98% and 100% on a month-to-month basis.  

 

The chart above also evidences REO (bank-owned) properties.  These are also highly successful listed properties - for some of the same principles, but different reasons as the HUD transactions.  The REO (bank-owned) properties also adhere to more strict guidelines when it comes to qualifying their borrowers - however, the lender is the party selling the property - so, the lender can dictate the terms more according to what the borrower may need.  Even though this does affect the overall transaction, it tends to favor the borrower as well as the lender.  The borrower has to qualify much the same - however, the burden to qualify the seller is removed from the picture.  This allows the lender to become more flexible to the needs of the transaction - which leans to more of these deals closing consistently.  This percentage hoovered between 94% and 97% in the past 24-month period with a slight dip in December 2012 (87%).  

 

The transactional type that has definitely seen steady change are the Normal transactions in the Real Estate market in the Metro Phoenix area.  This Listing Success Rate for this transactional type was about 65% in April 2011.  This number increased throughout the year and has been consistantly at or around 79% for the past 12-months.  This is a good sign of stabilization - as more homes close under the normal circumstances - more value is added to the homes around that property being sold, which brings up the value of the area, which essentially brings up the values of the homes in that city.  The trickle up effect is definitely in place with regard to growth and stability in this Real Estate market.

 

Finally, the Short-sale transactional type had significant improvements according to the graph provided above.  In April 2011, it was evident that the Short-sale process was a long and tedious one averaging a 48% Listing Success Rate - allowing upside-down homeowners the ability to sell their properties for a somewhat not upside-down price.  The lenders are recognizing the importance of allowing the sale of a home for a much lower price than the upside-down property is worth - the lender has to be willing to take a cut in the value of the home if the homeowner is having difficulties with paying their mortgage.  As of recent months, lenders are realizing that these situations can end up benefitting both the buyer and the lender - as, the buyer gets a home that they love and may stay in for the long haul and the lender gets to release costly assets that might yield them a profit.  As 2012 came to a close, the Short-sale transaction process' Listing Success Rate had climbed to 68%.  It has since maintained that average - which shows that this market is stabliizing.  

 

Overall, it is a GREAT TIME TO SELL YOUR HOME.  You may have heard on the News that Phoenix is leading the country in Flash Purchases - meaning that a home will go on the market and will have a working bid within 24-hours.  This means that there is a much higher demand than there is supply - which is a SELLER'S MARKET.  If you have been considering selling your home - give Anna 'Banana' Kruchten a call to review your FREE PROPERTY ANALYSIS REPORT that will tell you exactly what your property's potential is.  With Anna Banana's highly-qualified network of professionals - she will make sure that the selling process is a seamless one.  

 

Phoenix Market Trends - Listing Success Rate as of March 2013

 

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Anna “Banana” Kruchten

Broker, CRS, CRB

HomeSmart International

602-380-4886

Certified Residential Broker  CRB

Certified Residential Specilist CRS

AZ DRE Certified Real Estate Instuctor

 

 Your Referrals & Testimonials Are Greatly Appreciated!

 


 

 



 

 

   

 

 

                  

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Ambassador
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Lori Bowers
La Quinta, CA
The Lori Bowers Group

It sounds like a mirror of our market in the Palm Springs area.

Mar 26, 2013 08:54 AM #1
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

This is big girl stuff Miss Banana!

Mar 26, 2013 08:55 AM #2
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Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

Wow.  This one makes my head swim.  You did a ton of research my friend.

Mar 26, 2013 10:08 AM #3
Rainer
78,723
Mike Sibbald
Elevations Real Estate, LLC - Fort Collins, CO
Broker/Owner Elevations Real Estate, LLC

Nice info Anna.  Your chart is great.  It looks like things are getting better!  

Mar 26, 2013 11:13 AM #4
Rainmaker
3,897,686
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Hi Anna,

Great post and Belinda is right..lots of research..thanks for your presentation..good insight into your market!

Mar 26, 2013 11:42 AM #5
Rainmaker
3,488,292
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Anna, nice to see a market beginning the stabilization process. Enjoy your day!

Mar 26, 2013 08:03 PM #6
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