Here it is…the post about the current state of the Phoenix Real Estate market.
Let’s face it, real estate posts are pretty boring so rather than bore you to tears with a lot of charts and stats I am going to give you a few highlights followed up with quotes from an article that was in the Phoenix Business Journal yesterday.
PRICES ARE UP/FORECLOSURE LISTINGS ARE DOWN:
“For 2012, median home prices were up by almost 34 percent and foreclosures plunged by a staggering 51 percent. In addition, cash investors who have been causing a throbbing headache for traditional buyers are apparently showing less interest in the market, the report said. With median home prices shooting 34 percent higher in 2012, prices went from $122,500 at the end of 2011 to $164,000 and the close of 2012.”
SUPPLY IS DOWN:
“Problem is that homes sales were down and the “chronic supply problem” that Orr noted Phoenix has been facing in his previous report last month is still very real. Despite an encouraging 13 percent rise in supply during the fourth quarter, the number of existing homes listed on the Arizona Regional Multiple Listing Service (that were not under contract with a prospective buyer) on Jan. 1 dropped again by 6.5 percent month-over-month to 12,623 total listings. That’s the reason why we’re seeing prices surge and investor activity wane. Overall listings on Jan. 1, (19,952) were also down 6 percent year-over-year.”
HOMES LISTED UNDER $150K ARE SCARCE:
“There’s also a severe scarcity of homes in the lower price ranges, fostering a huge imbalance of more buyers than sellers. That’s because the largest bulk of those Jan. 1 listings, or 76 percent, were priced above the $150,000 threshold, while 19 percent were listed at $500,000 or more (which Orr noted is adequate to meet demand in that price range).”
SALES ARE DOWN SINCE LOWER PRICED HOMES ARE SCARCE:
“The supply problem instigated a 12 percent year-over-year drop in sales activity in December, the report said. “With prices moving substantially higher, it’s not surprising that buyer interest eased a little,” Orr said. “We still see multiple bids for many resale listings, but demand isn’t as strong as it was in spring 2012.”
INVESTOR ACTIVITY IS DOWN BUT STILL PRESENT IN AZ MARKET:
“Despite the decline in foreclosures and short sales on the market, investors are still playing a big role in the Phoenix housing market. All-cash purchases accounted for 35.5 percent of the deals in Maricopa County in December. Cash buyers remained the most prevalent in the lower price range, scooping up nearly half of all home sales priced below $150,000; they also bought about one quarter of sales in the $150,000-$500,000 range and 30 percent of sales $500,000 and above.”
TRADITIONAL HOME BUYERS/OWNER OCCUPANTS ARE LOOKING AT NEW BUILDS AS AN ALTERNATIVE TO RESALE HOME LISTINGS:
“This supply shortage and investor activity has frustrated traditional home buyers so much so that they continue to turn to the new home market, the report said.”
Phoenix Business Journal article
Michael Orr’s Phoenix December Housing Report
