Phoenix Metro May 2008 Home Resale Numbers Including Foreclosure Sales.
June 21st, 2008 categories: Market Trends, Phoenix real estate
ASU Polytechnic has put out their May 2008 Greater Phoenix data. This data is derived from different sources, then the Phoenix resale numbers we presented at Phoenix Market Trends for May, which come from the ARMLS (Arizona Regional Multiple Listing Service).
ASU data separates regular sales from foreclosed sales.
In May 2008, 5,740 home sold, these are resale homes. A total of 1,475 homes out of the total were foreclosed transaction. This represents 25% of all home sold. Contrast this with 2007 when 5.8% of the homes sold were foreclosed sales in Maricopa County.
In Phoenix the total homes sold were 1,420 with a break down of 940 “traditional sales” and 480 foreclosed sales, or 34% were foreclosure sales. That’s quite a lot of homes.
(Graph is from ASU Realty Studies)
Compare the above numbers to 2007, when a total of 1,405 homes sold in May but only 6% were foreclosed sales (85). In most cities the amount of foreclosed sales increased with cities like Tempe, Scottsdale and Sun City with the lowest percentage of foreclosed sales to normal sales and cities like Avondale, Phoenix, Glendale and several others with the most.
While sales were about equal to those last year, Jay Butler states, “However, in a weak economy, many households now will not have the needed income to save their homes, even with a new mortgage payment plan.”
Indeed, the economy seems to be slowing down and inflation on the increase and the dollar is weak, not to mention the price of gasoline and food, all of which is having a direct effect on the turnover of money and the less money turns over the worse everyone will be off.
Despite the difficult road ahead there is no reason not to buy a home or invest in real estate, quite the contrary. If a buyer or investor has the resources and availability of financing this may be the period, which may be now and for the next few quarters, purchase properties that will provide a good return and possibly a very good return in the long run.
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Phoenix Real Estate Homes Sales Update
June 17th, 2008 categories: Market Trends
The ARMLS Greater Phoenix home resale numbers for May 2008 are in.
In May 2008 a total of 5,337 single family homes sold. This is down only 2.7% from 2007. That’s not that bad. What is interesting is that the days on the market have gone down from 98 last year to 90 this year. Not much of a difference but its down none the less.
While homes sales are close to 2007 numbers the median price dropped from $305,000 in 2007 to $249,900 in 2008. That is an 18% drop in the median home price.
A total of 50,483 homes were listed in May compared to 51,013 last year. So inventory is down to 9 months or about the same as last year.
We’ll have more information over the next few days, including some graphs.
from: phoenixmarkettrends.com
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Phoenix Home Sales News for April 2008
May 13th, 2008 categories: Market Trends, Phoenix real estate
April 2008 Phoenix Home Sales News from PhoenixMarketTrends.com
The buzz is out. ASU Polytechnic has put our their April numbers for Greater Phoenix real estate sales and all the blogsites are shaking with activity, some just putting out numbers while other are commenting about those putting out number and then putting them out themselves, then others are…So what’s the break down.
In April 5,585 homes sold compared to 4,855 last year. That’s quite an increase. From what the report shows the pick up in sales is for lower priced homes. There is a lot of short sale, foreclosed and distressed properties being sold for very low prices, especially on the outskirts of Phoenix metro. Its the higher end homes that are stagnating now with high inventory and lower sales. This is probably the reason that year on year median home price for the Phoenix valley declined to $210,000 from last years $265,000.
Affordability is up, loans are available and buyers as well as inventory now see the opportunity and can act on it. Getting rid of the starter home stock should help with sales up the food chain but this may not happen because many of the homes sold are vacant anyways so there is no one to move up.
The increased activity is good but, is it a sign of a return? Probably not. The market is simply stabilizing at the bottom which may last a while and fluctuate both down and up.
A Coutrywide economist seems to think we are in for additional turmoil after a bit of peace this year.
“Home prices will stabilize for the remainder of this year with many forecasting a permanent bottom. The next leg down for this economic and credit cycle will begin next year with another government stimulus package to follow. Patience will be rewarded to those that don’t chase the first bounce off a temporary bottom. Those with debt should liquidate into strength and build savings for the opportunities that lie ahead in 2010 and beyond.”
Is this relevant for Greater Phoenix? Probably, but each neighborhood and segment moves differently.
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Are Smaller Houses Becoming More Popular in Phoenix?
May 12th, 2008 categories: Architecture, Market Trends
The houses of the future will be smaller. 60% of buyers surveyed by the National Association of Home Builders would prefer to have a smaller house but with more features.
So far this does not seem to be a trend in Phoenix as the average home square footage has been steadily growing. It was 1700 median square feet in early 2007 and its 1800 in 2008.
There are more people looking for quality vs. quantity, a good layout vs many rooms and access to entertainment without having to drive too much.
I hope this trends comes into its own. The building of smaller more efficient homes would use less energy and be easier to maintain not to mention less material to build.
Often is more about layout, use of space and quality of space then quantity of space that determines the quality of life in a house of apartment.
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Nice Bottom
May 9th, 2008 categories: Market Trends
Has the Phoenix real estate market entered the bottom of the real estate cycle? There seems to be more chatter that in fact it has. This chatter extends to printed material as well as online and in the streets. Personal Real Estate Investor publisher “…is going on the record as calling the first quarter of 2008 the bottom of the U.S residential real estate market.” and Cyril Moulle-Berteaux has an article titled, The Housing Crisis if Over, coming to a similar conclusion, that indeed it may be over.
The numbers indicate a similar conclusion and April resale numbers look very good indeed.The bottom is good. It means stability if nothing else and stability breeds confidence. Home prices are more affordable and though we may be at the bottom for quite a while as we go through the inventory.
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What’s going on with the Phoenix real estate market?
April 23rd, 2008 categories: Market Trends
That questions is loaded as is every answer to it! The only real answer is, is that it’s at best an educated guess, but there are some things that make things clearer. We’ll get to those later.
Take a look at the chart or homes sold in Phoenix for the last 3 years. Note that in the last 2 years, 2006 and 2007, sales of homes dropped or stayed pretty flat from January to February except in 2008 the sales from January to February increased followed by an increase in March. What does it mean?
It means that April will be a critical month for determining the what trend the current Phoenix market is following and where we may be in the real estate cycle. My take on it is that we are at or near the bottom especially if you take into consideration the price per square foot. It looks and feels, in the gut, like were at the bottom.
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