Entries Tagged as 'Real Estate News'

Phoenix Metropolitan Area Real Estate Statistics – July 2012

August 18th, 2012 · No Comments

Phoenix Metropolitan Area Real Estate Statistics – July 2012

What is happening with the real estate market in the Phoenix metropolitan area? What changed in July 2012?
[Statistics come from the Arizona Regional Multiple Listing Service (ARMLS).]

[click on the charts to expand]

1) SALES: July 2012 had sales of 7,152, which was less than July 2011’s 8,396 sales.  However, when we consider there were over 7,000 more listings last July, the sales figure remains strong.  35% of the listings sold in July 2012.
85% of the sales in July 2012 were homes, 13% were condos, and 2% were manufactured housing.

Phoenix metropolitan area real estate statistics July 2012 MLS sales

Bank-owned foreclosure properties accounted for 11% of the sales in July 2012; a year ago, 38% of the sales were bank-owned.  The all-time high was 66.5% in March 2009! We’ve come a long way in three years.  As of August 17, 2012, there are only 1,166 bank-owned active listings in the entire Phoenix metro area.

Phoenix metropolitan area real estate statistics July 2012 MLS bank-owned REO sales

44.6% of the total sales in July 2012 were cash. A year ago, it was a fraction more.

Phoenix metropolitan area real estate statistics July 2012 MLS cash sales

Almost 20% of the total sales in July 2012 were purchased with FHA or VA financing.  25% of the sales in July 2011 were FHA or VA loans.  Since both the cash percentage and FHA/VA percentage declined somewhat, this tells us more people are using conventional financing.

Phoenix metropolitan area real estate statistics July 2012 MLS FHA VA financing sales

2) SALES PRICE: The average sales price in July 2012 was $200,614.  Above $200k has only happened one other time since November 2008.  A year ago, the average sales price was $155,000.  That’s a 29% increase in one year.  The lowest average sales price in the past 12 years was August 2011 at $151,368.  Certainly, the decrease in bank-owned and short sale listings is helping lift these figures.

Phoenix metropolitan area real estate statistics July2012 MLS average sold price

Median sales price in July 2012 also increased to $147,900.  This was the highest since November 2008.  A year ago, the median sales price was $109,000, our 2nd lowest level in over 12 years.  That’s a 36% increase in one year!

Phoenix metropolitan area real estate statistics July 2012 MLS median sold price

68% of the sales in July 2012 were below $200,000, 78% under $250,000, 85% under $300,000, and 89% under $350,000.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory. The absorption rate in July 2012 was 2.9 months.  Up slightly from June 2012.  A balanced buyer-seller market is six months.  The absorption rate in July 2012: 2.7 months for homes, 3.0 months for condos, and 7.4 months for manufactured homes.

Phoenix metropolitan area real estate statistics July2012 MLS absorption rate inventory

This chart shows the number of listings over the past ten years.  The overall number of total listings has declined to 20,384 in July 2012, down over 7,000 from last year.  As of August 18, 2012, there are 14,100 active listings in the Phoenix metro area.  We are back to 2005 levels. We can attribute this drop to three things: 1) Decline in bank-owned listings, 2) decline in short sale listings, and 3) the only sellers who want to sell right now are down-sizing, have to move, or have equity to sell.

Phoenix metropolitan area real estate statistics July 2012 MLS listings

The number of new listings in July was 9,079.  This was the lowest number of listings in any July in over twelve years.  2012 will probably have the lowest total new listings since before 2001, and that includes 2005.

Phoenix metropolitan area real estate statistics July 2012 MLS new listings

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 64 days to sell in July 2012, the lowest since June 2006.  The all-time highest was 110 days in January 2008.

Phoenix metropolitan area real estate statistics July 2012 MLS days on market homes

Condos took 76 days to sell in July 2012.  The all-time highest was 118 days in March 2008.

Phoenix metropolitan area real estate statistics July 2012 MLS days on market condo

5) SALES PRICE VERSUS LIST PRICE: The percent of $$$ that sellers keep (sales price divided by list price) in July 2012 was 98.1%, the highest percentage since January 2006!  A year ago, it was 96.6%.  Low supply means that buyers can’t expect low-ball offers to be accepted.  In fact, in the lower priced market (below $200,000), multiple offers are common.  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics July 2012 MLS sales versus vs list price

6) PENDING SALES: Pending sales are a great indicator of future sales.  We are at 10,750 pending sales on August 18th (17,500 if you include the contingency contracts).  There were 11,141 pending sales on August 15th; in the past 19 months, only one time was the highest pending sales of a month below 11,000.  Home buying remains strong in Phoenix.  There are a lot of buyers who are confident in Phoenix’s future to purchase now.  Low prices plus record low interest rates = a winning formula.

Phoenix metropolitan area real estate statistics July 2012 MLS pending sales

Pending sales reached an all-time high of 15,402 on April 29, 2010.  When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record.  We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $98 per square foot in July 2012.  It was $80 per square foot one year ago. A 22% increase.  The lowest amount in 12 years was August 2011 at $79 per square foot.  We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics July 2012 MLS price per square foot

8) VACANT HOMES: A significantly high number of Phoenix metro area MLS active listings have been vacant in the past 5 years.  Sold homes have an even higher number of vacancies.  But the numbers continue to improve.  Vacant properties accounted for 54% of all properties sold in July 2012, the lowest since July 2007.  The vacancy rate of sold properties in July 2011 was 74%.  The normal is under 40%, however. The record low was 34% vacant sold homes in July 2001. The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics July 2012 MLS vacant sales

9) ASKING PRICE VERSUS SOLD PRICE: What is the difference between asking prices and sold prices? The average new list price in July 2012 was $227,801, up $39,000 from last July.

Phoenix metropolitan area real estate statistics July 2012 MLS average sold new list price

The median new list price in July 2012 was $158,000, which was $33,000 more than July 2011.  Fewer bank-owned and short sale listings are helping this number rise.

Phoenix metropolitan area real estate statistics July 2012 MLS median sold new list price

10) SHORT SALES: 29% of all MLS sales in July 2012 were short sales.  It was 22% last July.  The chart shows the rise in short sales in the past three years.

Phoenix metropolitan area real estate statistics July 2012 MLS short sales sold percent

There has been talk in the past two years that the future of home sales in the Phoenix metro area is short sale listings. But then a funny thing happened: they went away. Perhaps it was the banks’ willingness to refinance or seller frustration. The chart shows the remarkable decline in short sale listings in the past year. A year ago, there were over 4,400 active short sale listings. As of August 17, 2012, there were only 1,115!

Phoenix metropolitan area real estate statistics July 2012 MLS short sales listings

The future? It’s a mixed bag.  There has been an increase in listings in August, which is normal.  Phoenix’s hot buying months are February-June.  Expect to see an increase in short sale listings in the next two months as short sale sellers panic to beat the December 31st expiration for the tax foregiveness act.  However, these homes will need to be under contract by mid-September to have a chance to sell by December 31st.  Sales prices will likely level out with slight increases for the remainder of the year.

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics – June 2012

July 18th, 2012 · 1 Comment

Phoenix Metropolitan Area Real Estate Statistics – June 2012

What is happening with the real estate market in the Phoenix metropolitan area? What changed in June 2012? Many significant improvements to the overall market.
[Statistics come from the Arizona Regional Multiple Listing Service (ARMLS).]

[click on the charts to expand]

1) SALES: June 2012 had sales of 8,515, which was less than June 2011’s 11,134 sales.  However, when we consider there were over 10,000 more listings last June, the sales figure remains strong.  In June 2012, a remarkable 46% of the listings sold (versus 38% the June before).  This was the highest percentage since September 2005.

Phoenix metropolitan area real estate statistics June 2012 MLS sales

85% of the sales in June 2012 were homes, 13% were condos, and 2% were manufactured housing.

Bank-owned foreclosure properties accounted for almost 12% of the sales in June 2012; a year ago, 38% of the sales were bank-owned. The all-time high was 66.5% in March 2009! We’ve come a long way in three years. This was the lowest percentage since December 2007!  As of July 18, 2012, there are only 1,037 bank-owned active listings in the entire Phoenix metro area.

And, no, there is no 2nd wave of foreclosures (aka shadow inventory) coming. Naysayers have been crying that since early 2009 and it never happened. Arizona is a non-judicial foreclosure state. Banks do not have to go to court to foreclose on a home owner. If you’re late, you get served a 90-day notice of trustee sale (or notice of foreclosure). Three years ago, there were nearly 50,000 foreclosure notices. In May 2012, it was 16,000 to 18,000 according to reliable sources. Most of those will be purchased at the foreclosure auction (trustee sale), thus avoiding them showing up in MLS.

46.1% of the total sales in June 2012 were cash. A year ago, it was slightly less.

Phoenix metropolitan area real estate statistics June 2012 MLS cash sales

19% of the total sales in June 2012 were purchased with FHA or VA financing, the lowest percentage since March 2008.  26% of the sales in June 2011 were FHA or VA loans.  Since the cash percentage remained the same, this tells us more people are using conventional financing.  Can we assume then that more buyers have more savings to put down on a purchase?

Phoenix metropolitan area real estate statistics June 2012 MLS FHA VA financing sales

2) SALES PRICE: The average sales price in June 2012 decreased slightly to $198,731, but at levels seen back in 2008.  A year ago, the average sales price was $159,938. That’s a 24% increase in one year.  The lowest average sales price in the past 12 years was August 2011 at $151,368.  Certainly, the decrease in bank-owned and short sale listings is helping lift these figures.  For that, we are grateful.

Phoenix metropolitan area real estate statistics June 2012 MLS average sold price

[A comment about short sales:  At the time of contract, agents do not know if/when a bank will approve the sale and if/when the transaction will close; many agents thus make a guess, like say June 30th for example.  On June 30, 2012 (which is a Saturday when banks, title companies, and the county recorder’s office are closed), there were 716 “sales” (76% of them were short sales).  It looked like there were 9,164 sales in June 2012, but once reality hit and properties were moved back from sold to pending status, the sales number settled at 8,515.  The “false” short sale sales had a negative impact on price.  The average sold price showed up as $193,817 but rose to $198,731 when the “false” short sale sales were removed.  Median sales price went from $141,000 to $145,000, too.  A majority of the short sale properties currently under contract will be sold; they are priced lower and will negatively affect pricing once sold.]

Median sales price in June 2012 also decreased $500 to $145,000. But a year ago, the median sales price was $110,500, the second lowest in over 12 years.  That’s a 31% increase in one year.

Phoenix metropolitan area real estate statistics June 2012 MLS median sold price

68% of the sales in June 2012 were below $200,000, 78% under $250,000, 84% under $300,000, and 89% under $350,000. (Looking back to January 2011, those numbers were 79%, 86%, 90%, and 93%, respectively.)

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory. The absorption rate in June 2012 was a very low 2.2 months!  We haven’t seen this low level since August 2005!  A balanced buyer-seller market is six months. The absorption rate in June 2012: 2.1 months for homes, 2.3 months for condos, and 5.5 months for manufactured homes.

Phoenix metropolitan area real estate statistics June 2012 MLS absorption rate inventory

This chart shows the number of listings over the past ten years. The overall number of total listings declined to 19,857 in June 2012, the lowest level since September 2005. As of July 18, 2012, there are less than 13,300 active listings in the Phoenix metro area.  We are back to 2005 levels.  We can attribute this drop to three things: 1) Decline in bank-owned listings, 2) decline in short sale listings, and 3) the only sellers who want to sell right now are down-sizing, have to move, or have equity to sell.

Phoenix metropolitan area real estate statistics June 2012 MLS listings

4) AVERAGE DAYS ON MARKET:  Phoenix area homes took 66 days to sell in June 2012, the lowest since July 2006!  A year ago it was 82 days.  The all-time highest was 110 days in January 2008.

Phoenix metropolitan area real estate statistics June 2012 MLS days on market homes

Condos took 75 days to sell in June 2012, the lowest since November 2006.  A year ago it was 95 days.  The all-time highest was 118 days in March 2008.

Phoenix metropolitan area real estate statistics June 2012 MLS days on market condos

5) SALES PRICE VERSUS LIST PRICE:  The percent of $$$ that sellers keep (sales price divided by list price) in June 2012 was 97.9%, the highest percentage since March 2006! A year ago, it was 96.2%.  Low supply means that buyers can’t expect low-ball offers to be accepted.  In fact, in the lower priced market (below $150,000), multiple offers are common.  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics June 2012 MLS sales vs list price

6) PENDING SALES: Pending sales are a great indicator of future sales.  We are at 11,350 pending sales on July 18th (18,540 if you include the contingency contracts). Home buying remains strong in Phoenix, considering the low inventory.  There are a lot of buyers who are confident in Phoenix’s future to purchase now.  Low prices plus record low interest rates = a winning formula.

Phoenix metropolitan area real estate statistics June 2012 MLS pending sales

Pending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $99 per square foot in June 2012 was a decrease from May 2012’s $102.  But it was $82 per square foot one year ago.  A 21% increase.  The lowest amount in 12 years was August 2011 at $79 per square foot.  We peaked above $180/sqft in 2006.
[It used to be that bank-owned foreclosure listings were the lowest.  That is no longer the case in the Phoenix metro area.  Short sale sales in June averaged $73 per square foot.  Bank-owned sales in June averaged $80 per square foot.]

Phoenix metropolitan area real estate statistics June 2012 MLS price per square foot

8) VACANT HOMES:  An unprecedented number of Phoenix metro area MLS active listings have been vacant in the past 5 years.  Sold homes have an even higher number of vacancies.  But the numbers have vastly improved. Vacant properties accounted for 55% of all properties sold in June 2012. This was the lowest level since July 2007.  The vacancy rate of sold properties in June 2011 was 71%.  The normal is under 40%, however.  The record low was 34% vacant sold homes in June 2001. The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics June 2012 MLS vacant properties sold

9) ASKING PRICE VERSUS SOLD PRICE: What is the difference between asking prices and sold prices? The average new list price decreased slightly in June 2012 to $227,910, but up $38,000 from last June.

Phoenix metropolitan area real estate statistics June 2012 MLS average new list sold price

The median new list price in June 2012 was $155,900, which was $35,000 more than June 2011.  Fewer bank-owned and short sale listings are helping this number rise.

Phoenix metropolitan area real estate statistics June 2012 MLS median new list sold price

10) SHORT SALES: 28% of all MLS sales in June 2012 were short sales. It was 24% last June. The chart shows the rise in short sales in the past three years.

Phoenix metropolitan area real estate statistics June 2012 MLS short sales solds

There has been talk in the past two years that the future of home sales in the Phoenix metro area is short sale listings. But then a funny thing happened: they went away. Perhaps it was the banks’ willingness to refinance or seller frustration. The chart shows the remarkable decline in short sale listings in the past year. Two years ago, there were over 11,000 active short sale listings. As of July 18, 2012, there are only 1037!

Phoenix metropolitan area real estate statistics June 2012 MLS short sale active listings

The future? It’s hard to say.  On the good side, we have decreased bank-owned and short sale listings, homes and condos are selling quicker, prices have increased, sellers are negotiating higher prices.  However, short sales and bank-owned properties account for 67% of those under contract; they will sell for significantly less per square foot than traditional sales.  There are 12,400 of them waiting to close escrow.  I think we’ll see some ups and downs in the next few months regarding sales prices.
Also, there is uncertainty if Congress will act before the November election on extending the tax debt forgiveness for short sales (it expires December 31st).  Some homeowners may rush to list their homes as short sales in the next three months and then hope for an offer by mid-September and a successful closing by December 31st.  Otherwise, we could see short sales disappear by Thanksgiving; they’ll just let their homes go to foreclosure.

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics - May 2012

June 7th, 2012 · No Comments

Phoenix Metropolitan Area Real Estate Statistics – May 2012

What is happening with the real estate market in the Phoenix metropolitan area? What changed in May 2012? Many significant improvements to the overall market.
[Statistics come from the Arizona Regional Multiple Listing Service (ARMLS).  Some May statistics are not officially available; we use April’s instead.]

[click on the charts to expand]

1) SALES: May 2012 had sales of 8,423, which was less than May 2011’s 9,811 sales.  However, when we consider there were over 10,000 more listings last May, the sales figure remains strong.  In fact, it was nearly identical to April 2012’s sales.  In April 2012, 40% of the listings sold (versus 27% the April before).  85% of the sales in May 2012 were homes, 13% were condos, and 2% were manufactured housing.

Phoenix metropolitan area real estate statistics May 2012 MLS sales

Bank-owned foreclosure properties accounted for almost 15% of the sales in May 2012; a year ago, 38% of the sales were bank-owned.  The all-time high was 66.5% in March 2009!  We’ve come a long way in three years.  As of June 7, 2012, there are only 1,002 bank-owned active listings in the entire Phoenix metro area. 

And, no, there is no 2nd wave of foreclosures (aka shadow inventory) coming.  Naysayers have been crying that since early 2009 and it never happened.  Arizona is a non-judicial foreclosure state.  Banks do not have to go to court to foreclose on a home owner.  If you’re late, you get served a 90-day notice of trustee sale (or notice of foreclosure).  Three years ago, there were nearly 50,000 foreclosure notices.  In May 2012, it was 16,000 to 18,000 according to reliable sources.  Most of those will be purchased at the foreclosure auction (trustee sale), thus avoiding them showing up in MLS.

Phoenix metropolitan area real estate statistics May 2012 MLS bank-owned REO sales

46.5% of the total sales in May 2012 were cash.  A year ago, it was was same.

Phoenix metropolitan area real estate statistics May 2012 MLS cash sales

19% of the total sales in May 2012 were purchased with FHA or VA financing, the lowest percentage since March 2008.  25% of the sales in May 2011 were FHA or VA loans.  Since the cash percentage remained the same, this tells us more people are using conventional financing.

Phoenix metropolitan area real estate statistics May 2012 MLS FHA VA sales

2) SALES PRICE: The average sales price in May 2012 increased for the 7th month in a row to $202,799, the highest level since October 2008!  A year ago, the average sales price was $158,780.  That’s a 28% increase in one year.  The lowest average sales price in the past 12 years was August 2011 at $151,368.  Certainly, the decrease in bank-owned and short sale listings is helping lift these figures.  For that, we are grateful.

Phoenix metropolitan area real estate statistics May 2012 MLS average sales price

Median sales price in May 2012 also increased to $145,500. A year ago, the median sales price was $108,300, our lowest level in over 12 years.  That’s a 34% increase in one year.

Phoenix metropolitan area real estate statistics May 2012 MLS median sales price

69% of the sales in May 2012 were below $200,000, 79% under $250,000, 84% under $300,000, and 89% under $350,000.  (Looking back to January 2011, those numbers were 79%, 86%, 90%, and 93%, respectively.)

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory. The absorption rate in April 2012 was 2.5 months!  A balanced buyer-seller market is six months.  The absorption rate in April 2012: 2.4 months for homes, 2.4 months for condos, and 6.4 months for manufactured homes.

Phoenix metropolitan area real estate statistics April 2012 MLS inventory absorption rate

This chart shows the number of listings over the past ten years.  The overall number of active listings has declined to 21,000 in April 2012.  As of June 6, 2012, there are less than 12,700 active listings in the Phoenix metro area.  We are back to 2005 levels.  We can attribute this drop to three things:  1) Decline in bank-owned listings, 2) decline in short sale listings, and 3) the only sellers who want to sell right now are down-sizing, have to move, or have equity to sell.

Phoenix metropolitan area real estate statistics April 2012 MLS listings

4) AVERAGE DAYS ON MARKET:  Phoenix area homes took 73 days to sell in May 2012, the lowest since December 2009.  The all-time highest was 110 days in January 2008.

Phoenix metropolitan area real estate statistics May 2012 MLS days on market homes

Condos took 90 days to sell in May 2012.  The all-time highest was 118 days in March 2008.

Phoenix metropolitan area real estate statistics May 2012 MLS days on market condos

5) SALES PRICE VERSUS LIST PRICE:  The percent of $$$ that sellers keep (sales price divided by list price) in May 2012 was 97.2%, the highest percentage since July 2006! A year ago, it was 96.1%.  Low supply means that buyers can’t expect low-ball offers to be accepted.  In fact, in the lower priced market (below $150,000), multiple offers are common.  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics May 2012 MLS sales vs list price

6) PENDING SALES: Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales. We are at 12,100 pending sales on June 7th (19,644 if you include the contingency contracts).  Home buying remains strong in Phoenix.  There are a lot of buyers who are confident in Phoenix’s future to purchase now.  Low prices plus record low interest rates = a winning formula.

Phoenix metropolitan area real estate statistics May 2012 MLS pending sales

Pending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $102 per square foot in May 2012 was the highest amount since December 2008!  It was $82 per square foot one year ago.  A 24% increase.  The lowest amount in 12 years was August 2011 at $79 per square foot.  We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics May 2012 MLS price per square foot

8) VACANT HOMES: An unprecedented number of Phoenix metro area MLS active listings have been vacant in the past 5 years.  Sold homes have an even higher number of vacancies. But the numbers are improving.  Vacant properties accounted for 58% of all properties sold in May 2012. The vacancy rate of sold properties in May 2011 was 74%.  The normal is under 40%, however. The record low was 34% vacant sold homes in June 2001. The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics May 2012 MLS vacant sold listings

9) ASKING PRICE VERSUS SOLD PRICE:  What is the difference between asking prices and sold prices?  The average new list price increased in April 2012 to $228,582, up $35,000 from last April.

Phoenix metropolitan area real estate statistics May 2012 MLS average new list price

The median new list price in April 2012 was $150,000, which was $19,000 more than April 2011.  Fewer bank-owned and short sale listings are helping this number rise.

Phoenix metropolitan area real estate statistics May 2012 MLS median new list price

10) SHORT SALES: 26% of all MLS sales in May 2012 were short sales.  It was 21% last May.  The chart shows the rise in short sales in the past three years.

Phoenix metropolitan area real estate statistics May 2012 MLS short sales

There has been talk in the past two years that the future of home sales in the Phoenix metro area is short sale listings.  But then a funny thing happened:  they went away.  Perhaps it was the banks’ willingness to refinance or seller frustration.  The chart shows the remarkable decline in short sale listings in the past year.  A year ago, there were over 11,500 active short sale listings.  As of June 7, 2012, there are only 912!

Phoenix metropolitan area real estate statistics May 2012 MLS short sale listings

The future? It’s looking rosy.  On June 7, 2012, Zillow placed Phoenix as the #2 best US city to buy a home in 2012 (behind Grand Rapids, Michigan).  Zillow predicts Phoenix homes prices will rise 6.5% in 2012.  The downside to lower inventory and higher prices is that buyers in the lower price range (below $125,000) might be priced out of the market.  One of my clients submitted an offer $5,000 above asking price and competed with 26 other offers; he didn’t get the house.  I’ve seen a listing that had 41 offers.

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For January 2011

February 17th, 2011 · No Comments

Phoenix Metropolitan Area Real Estate Statistics – January 2011

What is happening with the real estate market in the Phoenix metropolitan area? What changed in January 2011? Median sales price hit a new 10-year low.

[click on the charts to expand]

What is happening with the real estate market in the Phoenix metropolitan area? What changed in January 2011? Median sales price hit a new 10-year low.

1) SALES: January 2011 had sales of 6,541, which was higher than January 2010’s 5,789 sales, thanks in most part to investor purchases. Overall, 15% of the listings sold in January. 84% of the sales in January 2011 were homes, 14% were condos, and 2% were manufactured housing.

Phoenix metropolitan area real estate statistics January 2011 MLS salesBank-owned foreclosure properties accounted for almost 46% of the sales in January 2011; a year ago, 43% of the sales were bank-owned. When you combine short sales with bank-owned sales, they accounted for over 67% of all sales in January 2011. About only 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics January 2011 MLS sales50% of the total sales in January 2011 were cash, the highest percentage ever. A year ago, it was 43%. Investors are keeping our local market going and are eating up the foreclosure inventory. We are grateful for that.

Phoenix metropolitan area real estate statistics January 2011 MLS sales22% of the total sales in January 2011 were purchased with FHA or VA financing, the lowest percentage in 33 months. 31% of the sales in January 2010 were FHA or VA loans.

Phoenix metropolitan area real estate statistics January 2011 MLS sales2) SALES PRICE: The average sales price in January 2011 decreased from December 2010 to $156,978, the lowest level in over eleven years! [One minor reason for the lower price is the inclusion of bank-owned auction sales in our MLS system. With auction sale prices being significantly lower than the asking prices, it drags down the overall average.] A year ago, the average sales price was $175,710.

Phoenix metropolitan area real estate statistics January 2011 MLS salesThe median sales price in January 2011 also dropped to an 11-year low of $110,000. The Phoenix metropolitan area real estate market had previously bottomed out in early April 2009 at $115,500 and in November 2010 at $115,000. A year ago, the median sales price was $124,900.

Phoenix metropolitan area real estate statistics January 2011 MLS sales79% of the sales in December 2010 were below $200,000, 86% under $250,000, 90% under $300,000, and 93% under $350,000.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory. The absorption rate in January 2011 was 6.6 months. A balanced buyer-seller market is six months. The absorption rate in January 2011: 6.4 months for homes, 6.9 months for condos, and 9.7 months for manufactured homes.

Phoenix metropolitan area real estate statistics January 2011 MLS salesThis chart shows the number of listings over the past ten years. Inventory increased in January 2011. However, the overall number of active listings has declined 2,700 since January 1st, as of February 17th, to 35,020.

Phoenix metropolitan area real estate statistics January 2011 MLS sales4) AVERAGE DAYS ON MARKET: Phoenix area homes took 89 days to sell in January 2011, the highest in the past 22 months (74 days in January 2010). With a decrease in inventory, buyers gave consideration to previously ignored listings (with higher days on market).

Phoenix metropolitan area real estate statistics January 2011 MLS salesCondos took 105 days to sell in January 2011, the highest in the past 18 months (94 days in January 2010).

Phoenix metropolitan area real estate statistics January 2011 MLS sales5) SALES PRICE VERSUS LIST PRICE: The percent of $$$ that sellers keep (sales price divided by list price) in January 2011 was 95.1%, which was less than January 2010’s 95.5%. A normal market has sellers keeping 97.5% of their final list price. The inclusion of auction sales is helping lower this statistic.

Phoenix metropolitan area real estate statistics January 2011 MLS sales6) PENDING SALES: Pending sales are a great indicator of future sales. Foreclosure and short sale listings are leading the way with pending sales. We are at 12,100 pending sales on February 17th (18,650 if you include the contingency contracts). This is better than the highest pending totals in the past eight months! There are a lot of buyers who are confident in Phoenix’s future to purchase now. [One town that buyers are bullish on right now is San Tan Valley in the far southeast area; year-to-date sales in 2010 were 132, but already at 287 in 2011!] It is good news that so many homes are under contract. It helps reduce inventory. Nearly two years ago, there was a lot of talk in Phoenix about “shadow inventory” or a 2nd wave of foreclosures that the banks were going to dump on the market. Two years. Still hasn’t happened.

Phoenix metropolitan area real estate statistics January 2011 MLS salesPending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $81 per square foot in January 2011 was an eleven-year low. It was $91 per square foot in January 2010. We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics January 2011 MLS sales8) VACANT HOMES: An unprecedented number of Phoenix metro area MLS active listings still are vacant. Sold homes have an even higher number of vacancies. Vacant properties accounted for 77% of all properties sold in January 2011. The vacancy rate of sold properties in January 2010 was 77.5%. The normal is under 40%, however. The record low was 34% vacant sold homes in June 2001. The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics January 2011 MLS sales9) ASKING PRICE VERSUS SOLD PRICE: What is the difference between asking prices and sold prices? The average new list price went down $35,000 in January 2011 to $204,337, but up from December 2010.

Phoenix metropolitan area real estate statistics January 2011 MLS salesThe median new list price in January 2011 was $124,900, which was $20,000 less than January 2010, but up from December 2010. Investors buying cheap homes acted as an anchor on median sales price. Now is the time to buy.

Phoenix metropolitan area real estate statistics January 2011 MLS sales10) SHORT SALES: 21.7% of all MLS sales in January 2011 were short sales, an increase from last month. The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics January 2011 MLS salesThe success rate of a short sale listing actually selling was 13% in January 2011, lower than the success rate of all sales (15.3%). This chart compares the success rate of all listings selling to short sale listings selling.

Phoenix metropolitan area real estate statistics January 2011 MLS sales

The future? It’s anyone’s guess. February pending sales are up. But prices of sold properties are down. Investors are the dominant buyer right now as evidenced by the number of cash sales and lower priced sales. The good news will be if inventory continues to decrease.

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For December 2010

January 20th, 2011 · 3 Comments

Phoenix Metropolitan Area Real Estate Statistics - December 2010

What is happening with the real estate market in the Phoenix metropolitan area? What changed in December 2010? Median sales price hit a new 10-year low.

[click on the charts to expand]

1) SALES: December 2010 had sales of 8,401, which was higher than December 2009’s 7,661 sales. There was a surge in investor purchases.  Overall, nearly 20% of the listings sold in December.  84% of the sales in December 2010 were homes, 14.5% were condos, and 1% were manufactured housing.

Phoenix metropolitan area real estate statistics December 2010 MLS sales

Bank-owned foreclosure properties accounted for almost 49% of the sales in December 2010; a year ago, 43% of the sales were bank-owned.  When you combine short sales with bank-owned sales, they accounted for 68% of all sales in December 2010.  About only 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics December 2010 bank-owned sales

47% of the total sales in December 2010 were cash, the highest percentage ever.  A year ago, it was 39%.  Investors are keeping our local market going and are eating up the foreclosure inventory.

Phoenix metropolitan area real estate statistics December 2010 cash sales

25% of the sales were with FHA or VA financing.  This is the lowest percentage in the past 20 months.  A year ago, it was 32% as FHA & VA financing was very popular with first-time home buyers.

Phoenix metropolitan area real estate statistics December 2010 FHA VA financing sales

2) SALES PRICE: The average sales price in December 2010 increased slightly over November 2010 to $160,433, avoiding another record low. [One minor reason for the lower price is the inclusion of bank-owned auction sales in our MLS system. With auction sale prices being significantly lower than the asking prices, it drags down the overall average.]  A year ago, the average sales price was $177,572.

Phoenix metropolitan area real estate statistics December 2010 average sold price

The median sales price in December 2010 also dropped to a 10-year low of $110,250.  The Phoenix metropolitan area real estate market had previously bottomed out in early April 2009 at $115,500 and in November 2010 at $115,000.  A year ago, the median sales price was $126,500.

Phoenix metropolitan area real estate statistics December 2010 median sold price

79% of the sales in December 2010 were below $200,000, 86% under $250,000, 90% under $300,000, and 93% under $350,000.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory. The absorption rate in December 2010 was 5.1 months.  A balanced buyer-seller market is six months.  The absorption rate in December 2010: 4.9 months for homes, 5.3 months for condos, and 10.9 months for manufactured homes.  Therefore, it’s basically a balanced market for homes in the Phoenix metropolitan area with a slight advantage toward buyers.

Phoenix metropolitan area real estate statistics December 2010 inventory absorption rate

This chart shows the number of listings over the past ten years. Inventory decreased in December 2010.

Phoenix metropolitan area real estate statistics December 2010 listings inventory

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 87 days to sell in December 2010, the highest in the past 21 months (73 days in December 2009).  With a decrease in inventory, buyers gave consideration to previously ignored listings (with higher days on market).

Phoenix metropolitan area real estate statistics December 2010 days on market homes

Condos took 101 days to sell in December 2010, the highest in the past 17 months (87 days in December 2009).

Phoenix metropolitan area real estate statistics December 2010 days on market condos

5) SALES PRICE VERSUS LIST PRICE: The percent of $$$ that sellers keep (sales price divided by list price) in December 2010 was 94.4%, which was less than December 2009’s 96.3%.  A normal market has sellers keeping 97.5% of their final list price.  The inclusion of auction sales is helping lower this statistic.

Phoenix metropolitan area real estate statistics December 2010 sales price versus list price

6) PENDING SALES: Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales.  We expected the pending numbers to decline in the upcoming months as the holidays approach but that did not occur.  Pending sales numbers went up in December and are staying around the same amount in January.  We are at 10,100 pending sales on January 19th (16,000 if you include the contingency contracts).  This is better than the highest pending totals in August, September, October, or November 2010!  Someone is certainly buying homes in Phoenix during the usually slow season.  It is good news that so many homes are under contract.  It helps reduce inventory.  Nearly two years ago, there was a lot of talk in Phoenix about “shadow inventory” or a 2nd wave of foreclosures that the banks were going to dump on the market.  Two years.  Still hasn’t happened.

Phoenix metropolitan area real estate statistics December 2010 pending sales

Pending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $83 per square foot in December 2010 was a welcome relief after November 2010’s record low of $82.  It was $92 per square foot in December 2009.  We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics December 2010 sales price per square foot

8) VACANT HOMES:  An unprecedented number of Phoenix metro area MLS active listings still are vacant.  Sold homes have an even higher number of vacancies.  Vacant properties accounted for 78% of all properties sold in December, the highest level in the past 14 months.  The vacancy rate of sold properties in December 2009 was 77%.  The normal is under 40%, however. The record low was 34% vacant sold homes in June 2001.  The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics December 2010 vacant homes when sold

9) ASKING PRICE VERSUS SOLD PRICE:  What is the difference between asking prices and sold prices?  The average new list price went down $15,000 in December 2010 to $190,959.  And was $20,000 less than December 2009’s average new list price.

Phoenix metropolitan area real estate statistics December 2010 average new list price

The median new list price in December 2010 was $118,000, which was $17,000 less than December 2009.  This was the lowest median new list price in ten years!  Investors buying cheap homes acted as an anchor on median sales price.  Now is the time to buy.

Phoenix metropolitan area real estate statistics December 2010 median new list price

10) SHORT SALES: 19.7% of all MLS sales in December 2010 were short sales, a slight increase from last month.  The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics December 2010 short sales

The success rate of a short sale listing actually selling was 14.5% in December 2010, lower than the success rate of all sales (19.8%).  This chart compares the success rate of all listings selling to short sale listings selling.

Phoenix metropolitan area real estate statistics December 2010 short sales versus all sales

The future? It’s anyone’s guess.  January pending sales are up which should lead to strong winter sales amounts (against the usual trend).  But prices of sold properties are down.  Investors are the dominant buyer right now as evidenced by the number of cash sales and lower priced sales.  The good news will be if inventory decreases.

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For November 2010

December 16th, 2010 · 1 Comment

Phoenix Metropolitan Area Real Estate Statistics - November 2010

What is happening with the real estate market in the Phoenix metropolitan area? What changed in November 2010?  Average sales price, median sales price, and price per square foot hit new 10-year lows.

[click on the charts to expand]

1) SALES: November 2010 had sales of 6,777, which was lower than November 2009’s 7,494 sales.  However, bear in mind that there was a surge in home sales last November due to the first-time homebuyer tax credit deadline.  November 2010 sales were higher than October 2010 sales.  84% of the sales in November 2010 were homes, 14% were condos, and <2% were manufactured housing.

Phoenix metropolitan area real estate statistics November 2010 home sales

Bank-owned foreclosure properties accounted for 43% of the sales in November 2010; a year ago, 41% of the sales were bank-owned.  When you combine short sales with bank-owned sales, they accounted for 63% of all sales in November 2010.  So about 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics November 2010 bank-owned REO sales

43.7% of the total sales in November 2010 were cash, up from last month.  A year ago, it was 34% (due to the rush of first-time homebuyers using lender financing).  Investors are keeping our local market going and are eating up the foreclosure inventory.

Phoenix metropolitan area real estate statistics November 2010 cash sales

28% of the sales were with FHA or VA financing.  A year ago, it was 38% as FHA & VA financing was very popular with first-time home buyers.

Phoenix metropolitan area real estate statistics November 2010 FHA VA financing sales

2) SALES PRICE: The average sales price in November 2010 dropped to a 10-year low of $159,030. This is $50 lower than March 2009 when we thought the market had bottomed out then.  [One minor reason for the price drop is the inclusion of bank-owned auction sales in our MLS system.  With auction sale prices being significantly lower than the asking prices, it drags down the overall average.]

Phoenix metropolitan area real estate statistics November 2010 average sold price

The median sales price in November 2010 also dropped to a 10-year low of $115,000.  The Phoenix metropolitan area real estate market had previously bottomed out in early April 2009 at $115,500.  A year ago, the median sales price was $130,000.

Phoenix metropolitan area real estate statistics November 2010 median sold price

78% of the sales in November 2010 were below $200,000, 86% under $250,000, 90% under $300,000, and 93% under $350,000.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory.  The absorption rate in November 2010 was 6.7 months.  A balanced buyer-seller market is six months.  The absorption rate in November 2010: 6.5 months for homes, 7.2 months for condos, and 9.8 months for manufactured homes.  Therefore, it’s basically a balanced market for homes in the Phoenix metropolitan area with a slight shift toward buyers.

Phoenix metropolitan area real estate statistics November 2010 inventory absorption rate

This chart shows the number of listings over the past ten years.  Inventory has increased steadily.

Phoenix metropolitan area real estate statistics November 2010 listings

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 80 days to sell in November 2010 (68 days in November 2009).

Phoenix metropolitan area real estate statistics November 2010 days on market homes

Condos took 92 days to sell in November 2010 (95 days in November 2009).

Phoenix metropolitan area real estate statistics November 2010 days on market condos

5) SALES PRICE VERSUS LIST PRICE:  The percent of $$$ that sellers keep (sales price divided by list price) in November 2010 was 95.6%, which was less than November 2009’s 97.1% (when there was a rush on homes for the first-time home buyers tax credit deadline).  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics November 2010 sales price vs list price

6) PENDING SALES:  Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales.  We expected the pending numbers to decline in the upcoming months as the holidays approach.  Pending sales numbers actually increased in December.  We are at 10,600 pending sales on December 16th (16,700 if you include the contingency contracts).  This is better than the highest pending totals in August, September, October, or November 2010!  Someone is certainly buying homes in Phoenix during the holiday season.

Phoenix metropolitan area real estate statistics November 2010 pending sales

Pending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

7) PRICE PER SQUARE FOOT: $82 per square foot in November 2010 was the lowest price per square foot we’ve seen in over 10 years.  This means that larger homes are selling at deeper discounts.  It was $91 per square foot in November 2009. We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics November 2010 sales price per square foot

8) VACANT HOMES:  An unprecedented number of Phoenix metro area MLS active listings still are vacant.  Sold homes have an even higher number of vacancies.  Vacant properties accounted for 77% of all properties sold in November.  The vacancy rate of sold properties in November 2009 was also 77%. The normal is under 40%, however.  The record low was 34% vacant sold homes in June 2001. The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics November 2010 vacant sold homes

9) ASKING PRICE VERSUS SOLD PRICE:  What is the difference between asking prices and sold prices?  The average new list price went down $5,000 in November 2010 to $206,389.  And was $38,000 less than November 2009’s average new list price.

Phoenix metropolitan area real estate statistics November 2010 average new list sold price

The median new list price in November 2010 was $121,900, which was $23,000 less than November 2009.  This was the lowest median new list price in ten years!  Now is the time to buy.

Phoenix metropolitan area real estate statistics November 2010 median new list sold price

10) SHORT SALES:  19.5% of all MLS sales in November 2010 were short sales, a decline from last month.  Short sale listings had shown improvement over the past months, so September and October and November’s drop shows buyers are losing their patience with short sales along with an increase in short sale inventory.  The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics November 2010 short sales

The success rate of a short sale listing actually selling was 11.3% in November 2010, lower than the success rate of all sales (15.0%).  This chart compares the success rate of all listings selling to short sale listings selling.

Phoenix metropolitan area real estate statistics November 2010 short sales

The future?  It’s anyone’s guess.  December pending sales are up which should lead to strong winter sales amounts (against the usual trend).  But prices of sold properties are down.  Investors are the dominant buyer right now as evidenced by the number of cash sales and lower priced sales.

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Tags: Real Estate Statistics · Real Estate News

True Real Estate Stories - Tales of the Weird

November 28th, 2010 · 7 Comments

True Real Estate Horror Stories as seen first-hand and experienced by Leif Swanson.  Enjoy!

They Did What?
         House closed escrow.  Got a call from the buyers’ agent that night asking me, “What happened to the toilet seats?  They’re all gone.”  Seems that the seller removed all of the toilet seats and threw them away.  When asked, the seller replied, “Doesn’t everyone do that when they move?”  She makes a good point; who wants to sit on a used toilet seat?

Why Is Water Coming Out of the Garage?
         On a whim, I stopped by to check on one of my vacant listings.  Good thing I did, because I noticed water coming out of the garage.  The water heater had cracked, probably that morning.  The garage was wet, hot, & steamy.  I managed to shut off the electricity and water to the heater and then called the home warranty company.  A new water heater was installed the next day.  Luckily, no damage was done.

What’s That Smell?!
         I stopped by the water heater house a few days later to let in the home inspector and was overwhelmed by a horrible smell outside.  I traced the smell, unfortunately, to the back yard where I discovered a dead cat.  Poor thing was probably dead for 3-4 days; it looked “melted” in the 110-degree July sun with maggots everywhere.  I’ll spare you the morbid details.  The home inspector and I were able to properly remove the animal from the property, after I dry-heaved a few times.

Mushrooms On the Ceiling?
         This was a good one.  I previewed a vacant house in Mesa and was blasted with a strong musty odor.  One of the bedroom ceilings was covered in nasty mold.  Apparently the evaporative cooler had leaked through the roof to a bedroom.  The moisture was so bad that mushrooms grew from the ceiling!  I immediately covered my mouth and ran for the door to get my camera.  Mad dash inside, held my breath, clicked, and ran for the door.  I called the listing agent, coughing violently, to tell her about the serious mold problem; she said, “Oh, it’s not that bad.”  The photos are posted here.

House of Horrors
         A lovely house in Mesa featured a dead iguana (!), rubber bats hung from the hallway ceiling, black walls in the bedrooms, assorted skulls and bongs, nude pictures, and two huge half-full aquariums in the living room.  I grabbed my buyer’s arm and said, “Let’s go.”

Moles
         One old house in Mesa (what’s up with Mesa??) had piles of dirt in the living room.  When asked, the tenant said, “Raton grande.” (Large mouse in Spanish).  She had moles coming up into the house!

Age Appropriate?
         I went on a listing appointment and was shocked to see the seller’s 14-year-old son’s bedroom.  At least eight semi-nude and nude girlie posters adorned the walls.  Mom said, “Oh, I haven’t been in his room in awhile.  I made him take them down before.  I guess my husband let him do it again.”

Attic Hideout
         With newer construction, builders now put light bulbs and switches in attics.  During a home inspection for my buyer, we discovered that the seller liked to hide out in the attic.  We found a folding chair, a bottle of rum, and a box of printed “romantic” e-mails.

Creepy Pets
         One time on a Realtor home tour, we were all greeted at the front door by a rat in a cage.  We also saw a second rat and two ferrets.  Couldn’t tell you what the rest of the house was like; we all left immediately.

Termites, Termites
         Over the years, I’ve seen my share of termites.  The best ones are those that have taken months to crawl from outside, up walls, across one or two rooms, and then down from a ceiling.  I’ve also seen doorframes and kitchen counters completely destroyed.

Close Encounters of the Turd Kind
         Can’t tell you how many times I’ve seen animal feces inside houses!

Light Fight
         My buyer was excited to move into his home, but he discovered that the seller had switched out the beautiful dining chandelier.  We had photos to prove it.  The seller got mad that he was caught.  Instead of returning the stolen chandelier, he bought a $200 Home Depot gift card for my buyer and actually threw it at the buyer, saying, “Here you go.”  Poor sport.

Cats, Cats, Cats
         The quickest home showing I’ve ever done was 10 seconds.  The buyer and I entered a condo with at least 6 cats, two of which were perched at eye level at the front door.  The smell was so bad and the condo was so filthy, we didn’t go more than 4 feet inside before running for the door.

Can’t You Wait Just 5 Minutes?
         Instead of waiting until we left, the sellers each lit up cigarettes inside while I showed their house to my buyer.  This has happened on several occasions in my career.

Why Do I Feel So Sleepy?
         A run-down mobile home, I mean manufactured house, had several add-ons.  What was really scary was the stand-alone fireplace.  The sellers used the flue pipe to heat the house by running the pipe along the hallway!  Over 20 feet long!

Picky, Picky
        One overzealous home inspector wrote up several “problems” with one of my listings.  “Minor incrustations on the faucets” (yeah, it’s called calcium and lime deposits from the hard Arizona water) and my favorite “Disposal blades are rusty.”  Duh! 

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Tags: Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For October 2010

November 16th, 2010 · No Comments

Phoenix Metropolitan Area Real Estate Statistics - October 2010

What is happening with the real estate market in the Phoenix metropolitan area? What changed in October 2010?

[click on the charts to expand]

1) SALES: October 2010 had sales of 6,593, which was significantly lower than October 2009’s 8,121 sales. However, bear in mind that there was a surge in home sales last October due to the first-time home buyer tax credit.  85% of the sales in October 2010 were homes, 14% were condos, and <2% were manufactured housing.

Phoenix metropolitan area real estate statistics October 2010 MLS sales

Bank-owned foreclosure properties accounted for 43.5% of the sales in October 2010; a year ago, 45% of the sales were bank-owned.  When you combine short sales with bank-owned sales, they accounted for 65% of all sales in October 2010.  So only 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics October 2010 MLS bank-owned foreclosure

42.5% of the total sales in October 2010 were cash.  A year ago, it was 33%.  Investors are keeping our local market going and are absorbing the foreclosure inventory.

Phoenix metropolitan area real estate statistics October 2010 MLS cash sales

28.2% of the sales were with FHA or VA financing.  A year ago, it was 38% as FHA & VA financing was very popular with first-time home buyers.

Phoenix metropolitan area real estate statistics October 2010 MLS FHA VA financing

2) SALES PRICE: The average sales price in October 2010 increased 2% from September 2010 to $163,303.  And retreated back to April 2009 prices and 2002 prices.  A year ago it was $170,086.

Phoenix metropolitan area real estate statistics October 2010 MLS average sold price

The median sales price in October 2010 increased slightly to $120,000.  The Phoenix metropolitan area real estate market bottomed out in early April 2009 at $115,000.  Now we’re seeing a retreat in median sales price to May 2009.  It looks like we avoided another bottoming out and now have a gradual increase for 2 consecutive months.  A year ago, the median was $128,000.

Phoenix metropolitan area real estate statistics October 2010 MLS median sold price

77% of the sales in October 2010 were below $200,000, 85% under $250,000, 89% under $300,000, and 93% under $350,000, with a very slight increase in sales prices over $350,000 from last month.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory.  The absorption rate in October 2010 was up to 6.9 months.  A balanced buyer-seller market is six months.  The absorption rate in October 2010:  6.6 months for homes, 7.9 months for condos, and 11.2 months for manufactured homes.  Therefore, it’s basically a balanced market for homes in the Phoenix metropolitan area with a slight shift toward buyers.  Condo sales have quieted down a bit after having a surge in July & August.

Phoenix metropolitan area real estate statistics October 2010 MLS absorption rate inventory

This chart shows the number of listings over the past ten years.  Inventory has increased steadily in the past year.

Phoenix metropolitan area real estate statistics October 2010 MLS listings

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 81 days to sell in October 2010 (67 days in October 2009).

Phoenix metropolitan area real estate statistics October 2010 MLS days on market homes

Condos took 92 days to sell in October 2010 (97 days in October 2009).

Phoenix metropolitan area real estate statistics October 2010 MLS days on market condos

5) SALES PRICE VERSUS LIST PRICE:  The percent of $$$ that sellers keep (sales price divided by list price) in October 2010 was 95.3%, which was less than October 2009’s 97.2% (when there was a rush on homes for the first-time home buyers tax credit deadline).  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics October 2010 MLS sales vs list price

6) PENDING SALES: Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales.  Pending sales numbers are holding steady.  We are at 10,254 pending sales on November 15th (16,000 if you include the contingency contracts).  But this is 3,100 less than October 2009.  We expect the pending numbers to decline in the upcoming months as the holidays approach.  Pending sales reached an all-time high of 15,402 on April 29, 2010.  When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record.  We can attribute this to the first-time home buyer tax credit deadline.

Phoenix metropolitan area real estate statistics October 2010 MLS pending sales

7) PRICE PER SQUARE FOOT: $83 per square foot in October 2010 was the second lowest price per square foot we’ve seen in over 10 years.  This means that larger homes are selling at deeper discounts.  It was $89 per square foot in October 2009.  We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics October 2010 MLS price per square foot

8) VACANT HOMES:  An unprecedented number of Phoenix metro area MLS active listings still are vacant.  Sold homes have an even higher number of vacancies.  Vacant properties accounted for 77% of all properties sold in October.  The vacancy rate of sold properties in October 2009 was 79%.  The normal is under 40%, however.  The record low was 34% vacant sold homes in June 2001.  The record high was 88% in February 2009.

Phoenix metropolitan area real estate statistics October 2010 MLS vacant homes sold

9) ASKING PRICE VERSUS SOLD PRICE:  What is the difference between asking prices and sold prices?  The average new list price went up $5,000 in October 2010 to $212,035.  But was $38,000 less than October 2009’s average new list price.

Phoenix metropolitan area real estate statistics October 2010 MLS average new list sold price

The median new list price in October 2010 was $129,900, which was $19,000 less than October 2009.

Phoenix metropolitan area real estate statistics October 2010 MLS median new list sold price

10) SHORT SALES: 21.1% of all MLS sales in October 2010 were short sales, a small decline from last month.  The success rate of a short sale listing actually selling was 12.1% in October 2010, lower than the success rate of all sales (14.6%).  Short sale listings had shown improvement over the past months, so September and October’s drop shows buyers are losing their patience with short sales along with an increase in short sale inventory.  The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics October 2010 MLS short sales

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For September 2010

October 16th, 2010 · No Comments

Phoenix Metropolitan Area Real Estate Statistics - September 2010

What is happening with the real estate market in the Phoenix metropolitan area? What changed in September 2010?

[click on the charts to expand]

1) SALESSeptember 2010 had sales of 6,762, which was lower than September 2009’s 7,907 sales.  84% of the sales in September were homes, 14% were condos, and <2% were manufactured housing.

Phoenix metropolitan area real estate statistics September 2010 MLS sales

Bank-owned foreclosure properties accounted for 43.3% of the sales in September 2010; a year ago, 48% of the sales were bank-owned.  When you combine short sales with bank-owned sales, they accounted for 66% of all sales in September 2010. So only 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics September 2010 MLS bank-owned sales

43% of the total sales in September 2010 were cash.  A year ago, it was 35%.  The investors got into the action while regular buyers took a break.

Phoenix metropolitan area real estate statistics September 2010 MLS cash sales

29.4% of the sales were with FHA or VA financing.  A year ago, it was 35% as the first wave of the first-time home buyers tax credit hit.

Phoenix metropolitan area real estate statistics September 2010 MLS FHA VA sales

2) SALES PRICE:  The average sales price in September 2010 decreased nearly 3% from August 2010 to $159,824.  And retreated back to April 2009 prices and 2002 prices.

Phoenix metropolitan area real estate statistics September 2010 MLS average sales price

The median sales price in September 2010 increased to $119,500. The Phoenix metropolitan area real estate market bottomed out in early April 2009 at $115,000. Now we’re seeing a retreat in median sales price to May 2009. Fears of the Phoenix metro area market bottoming again have surfaced.  But October’s sales to date are showing a median sold price of $120,000.

Phoenix metropolitan area real estate statistics September 2010 MLS median sold price

78% of the sales in September 2010 were below $200,000, 85% under $250,000, 90% under $300,000, and 93% under $350,000, unchanged from last month.

3) INVENTORY: The absorption rate (the # of months’ inventory available for sale) is also known as inventory.  The absorption rate in September 2010 was up to 6.7 months.  A balanced buyer-seller market is six months.  The absorption rate in September 2010: 6.5 months for homes, 7.3 months for condos, and 11.1 months for manufactured homes. Therefore, it’s still a balanced market for homes in the Phoenix metropolitan area with a slight shift toward buyers.

Phoenix metropolitan area real estate statistics September 2010 MLS inventory absorption rate

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 82 days to sell in September 2010 (71 days in September 2009).

Phoenix metropolitan area real estate statistics September 2010 MLS days on market homes

Condos took 98 days to sell in September 2010 (95 days in September 2009).

Phoenix metropolitan area real estate statistics September 2010 MLS days on market condos

5) SALES PRICE VERSUS LIST PRICE: The percent of $$$ that sellers keep (sales price divided by list price) in September 2010 was 95.4%, which was less than September 2009’s 96.9%.  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics September 2010 MLS sales vs list price

6) PENDING SALES:  Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales.  Pending sales numbers have improved in October so far over last month.  We are at 10,406 pending sales on October 15th (16,400 if you include the contingency contracts).  But this is 3,000 less than October 2009.  We expect the pending numbers to decline in the upcoming months as the holidays approach.  Pending sales reached an all-time high of 15,402 on April 29, 2010. When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record. We can attribute this to the first-time home buyer tax credit deadline.

Phoenix metropolitan area real estate statistics September 2010 MLS pending sales

7) PRICE PER SQUARE FOOT: $82 per square foot in September 2010 was the lowest price per square foot we’ve seen in over 10 years.  This means that larger homes are selling at deeper discounts.  It was $89 per square foot in September 2009.  We peaked above $180/sqft in 2006.

Phoenix metropolitan area real estate statistics September 2010 MLS price per square foot

8) VACANT HOMES: An unprecedented number of Phoenix metro area MLS active listings still are vacant.  Sold homes have an even higher number of vacancies.  Vacant properties accounted for 76% of all properties sold in September.  The vacancy rate of sold properties in September 2009 was 79%. The normal is under 40%, however.

Phoenix metropolitan area real estate statistics September 2010 MLS vacant sold homes

9) ASKING PRICE VERSUS SOLD PRICE: What is the difference between asking prices and sold prices?  The average new list price went up $7000 in September 2010 to $207,858.  But was $29,000 less than September 2009’s average new list price.

Phoenix metropolitan area real estate statistics September 2010 MLS average new list sold price

The median new list price in September 2010 was $130,000, which was $15,000 less than September 2009.

Phoenix metropolitan area real estate statistics September 2010 MLS median new list sold price

10) SHORT SALES: 22.5% of all MLS sales in September 2010 were short sales, a sharp decline from last month’s 28%.  The success rate of a short sale listing actually selling was 13.2% in September 2010, lower than the success rate of all sales (15%). Short sale listings had shown improvement over the past months, so September’s drop was a surprise.  The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics September 2010 MLS short sales

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Tags: Real Estate Statistics · Real Estate News

Phoenix Metropolitan Area Real Estate Statistics For August 2010

September 17th, 2010 · No Comments

Phoenix Metropolitan Area Real Estate Statistics - August 2010

What is happening with the real estate market in the Phoenix metropolitan area? What changed in August 2010?

[click on the charts to expand]

1) SALESAugust 2010 had sales of 7,358, which was lower than August 2009’s 8,008 sales.  84% of the sales in August were homes, 15% were condos, and <2% were manufactured housing.  Condo sales increased in August as cash investors turned their focus toward cheaper move-in ready condos versus fixer-upper homes.

Phoenix metropolitan area real estate statistics August 2010 MLS sales

16.6% of the Phoenix metro area MLS listings sold in August, which was the same as July 2010 and down from August 2009’s 21%.  17% of the home listings sold in August; 15% of the condos sold; 9% of manufactured homes sold.  The jump from 10% to 15% of condos selling in August from July shows the shift in investors toward condos.

Bank-owned foreclosure properties accounted for 38% of the sales in August 2010; a year ago, 52% of the sales were bank-owned.  An increase in short sale sales helped reduce the bank-owned percentage.  When you combine short sales with bank-owned sales, they accounted for 67% of all sales in August 2010.  So only 1 in 3 sales was a traditional sale.

Phoenix metropolitan area real estate statistics August 2010 MLS bank-owned sales

42.5% of the total sales in August 2010 were cash.  A year ago, it was 36%.

Phoenix metropolitan area real estate statistics August 2010 MLS cash sales

28% of the sales were with FHA or VA financing.  A year ago, it was 34%.  Many of the first-time home buyers using the tax credit were FHA or VA buyers; the majority of these sales occurred in April-June, so it was expected to see this percentage decrease this summer and for upcoming months.  As a result, the percentage of cash sales increased.

Phoenix metropolitan area real estate statistics August 2010 MLS FHA VA financing

2) SALES PRICE:  The average sales price in August 2010 decreased nearly 7% from July 2010 to $164,057.  August 2010’s average sales price was $170,401, so we are seeing a slide in home prices, retreating back to May 2009 prices and 2002 prices.

Phoenix metropolitan area real estate statistics August 2010 MLS average sold price

The median sales price in August 2010 decreased to $119,000, thus ending a 5-month consecutive monthly year-over-year non-decrease.  The Phoenix metropolitan area real estate market bottomed out in early April 2009 at $115,000.  Now we’re seeing a retreat in median sales price to May 2009.  Fears of the Phoenix metro area market bottoming again have surfaced.  September’s sales to date are showing a median sold price of $118,000.

Phoenix metropolitan area real estate statistics August 2010 MLS median sold price

77.5% of the sales in August 2010 were below $200,000, 85.5% under $250,000, 90% under $300,000, and 92.5% under $350,000.  These percentages increased in August after being steady for many previous months.

3) INVENTORY:  The absorption rate (the # of months’ inventory available for sale) is also known as inventory.  The absorption rate in August 2010 was up to 6 months. A balanced buyer-seller market is six months.  The absorption rate in August 2010: 5.8 months for homes, 6.7 months for condos, and 11.3 months for manufactured homes. Therefore, it is a balanced market for homes in the Phoenix metropolitan area.

Phoenix metropolitan area real estate statistics August 2010 MLS inventory absorption rate

4) AVERAGE DAYS ON MARKET: Phoenix area homes took 82 days to sell in August 2010.

Phoenix metropolitan area real estate statistics August 2010 MLS days on market homes

Condos took 84 days in August 2010 (98 days in August 2009).  Investors turned their attention to bank-owned condos selling for under $60,000. This in turn helped the average & median sales prices to decline.

Phoenix metropolitan area real estate statistics August 2010 MLS days on market condos

5) SALES PRICE VERSUS LIST PRICE:  The percent of $$$ that sellers keep (sales price divided by list price) in August 2010 was 95.8%, which was less than August 2009’s 96.9%.  A normal market has sellers keeping 97.5% of their final list price.

Phoenix metropolitan area real estate statistics August 2010 MLS sold vs list price

6) PENDING SALES:  Pending sales are a great indicator of future sales.  Foreclosure and short sale listings are leading the way with pending sales.  The pending sales numbers dropped in September 2010 as the last of the first-time home buyers tax credit buyers closed escrow.  We are at 10,159 pending sales on September 17th (16,452 if you include the contingency contracts).  We peaked at 10,332 pendings on September 15th.  This is 3,000 less than September 2009.  We expect the pending numbers to decline in the upcoming months.  Pending sales reached an all-time high of 15,402 on April 29, 2010.  When you add in the contingency contracts, the combined number of properties under contract on April 29, 2010 was 23,630, an all-time record.  We can attribute this to the first-time home buyer tax credit deadline.

Phoenix metropolitan area real estate statistics August 2010 MLS pending sales

7) PRICE PER SQUARE FOOT: $85 per square foot in August 2010 was a sharp decline from last month’s $90.  This level is back to May 2009.  It was $87 per square foot in August 2009.

Phoenix metropolitan area real estate statistics August 2010 MLS price per square foot

8) VACANT HOMES:  An unprecedented number of Phoenix metro area MLS active listings still are vacant.  Sold homes have an even higher number of vacancies.  Vacant properties accounted for 71% of all properties sold in August.  The vacancy rate of sold properties in August 2009 was 80%!  The normal is under 40%, however.

Phoenix metropolitan area real estate statistics August 2010 MLS vacant sales

9) ASKING PRICE VERSUS SOLD PRICE:  What is the difference between asking prices and sold prices?  The average new list price went up in August 2010 to $200,763.  But was $26,000 less than August 2009’s average new list price.

Phoenix metropolitan area real estate statistics August 2010 MLS average sold new list price

The median new list price in August 2010 was $129,900, which was $10,000 less than August 2009.  It is also the lowest median new list price in ten years.  We can contribute an influx of cheap bank-owned condo listings to this decline.

Phoenix metropolitan area real estate statistics August 2010 MLS median sold new list price

10) SHORT SALES:  28.9% of all MLS sales in August 2010 were short sales, which is the highest percent ever (up from 18% in August 2009).  The success rate of a short sale listing actually selling was 19% in August 2010, better than the success rate of all sales; this is the third consecutive month that this has happened.  The chart shows the rise in short sales in the past two years.

Phoenix metropolitan area real estate statistics August 2010 MLS short sales

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Tags: Real Estate Statistics · Real Estate News