Phoenix Real Estate Market Update March 2013

Phoenix Real Estate Market Update March 2013

Sales Month over Month
Went up about 14% in February to 6,622, but this is usual for the season. The uptick didn’t make up for the 18% decline in January though.
Sales YOY
Sales in February were down over 8% since the same time last year. But, we’ve also seen a decline every month (from the previous years months) the last year.
New Inventory
We’re down here almost 11% to 8,778 units.
Total Inventory
The total amount available went down by 1.7% to 21,718 units, which is 8.5% below the YOY figure for 2012. We really haven’t moved much from the 19-23K range since March of 2012.
Under Contract –Backups as total % of available
UBC’s make up about 21% of all the active inventory, so there’s really only around 17,000 active listings that don’t have an offer right now.
Months Supply
We fell back down to around 3.28 months, still a sellers market.
New List Prices
Average new list price is around $283,400, a nearly 22% increase since March of 2012.
Sales Prices
Median sales price has gone up 23% in the last 12 months. Increase in median and average sales price have gone up since May 2011, with slow and steady increases.
Where are prices going?
Pending Price index looks 30 days into the future, and things median sales prices will drop from $160 to $163K, and average sales price from $216K to $214K.
Largest amount of our contracts are on property between $100-$150K.
Foreclosures Pending
We’re about to break the 10,000 and under a month barrier, which we wil probably do very soon. It hasn’t been this low since 2007.
Distressed Sales
In October of 2010, distressed sales were 74% of all sales! Now, they’re around 30%. There’s about 1,000 short sales getting done every month here, about 15% of all the total sales.
Days on Market
Right around 74, with a 12 month average of 75, not much has changed.
Additional thoughts:
Although it seems like the worst is over, the gains have been slow and steady.
The lack of inventory has buyers moving up to higher price points, and starting to look at new home construction rather than resale home.
In 2013, we might be looking at adding 17,000 new homes, up 40% from 2012. But, SB1070 is complicating the labor issue.
This could mean cost of construction, labor wages, and build times could take longer, and deter lower priced laborers.
The recent sequestration could have a possible negative effect on the west valley as well, with the Air force base and defense industry being so closely tied to their economy.
But, first time home buyers, investors and other buyers are still coming out of the woodwork to buy and invest in Arizona real estate, so we’ll work through these challenges much like the rest of the last few years and keep moving forward.
Tracy (G+) is an Arizona Short Sale Realtor, Investor, Rehabber, and Foreclosure Expert.
She also is an avid blogger, vlogger, contributor to the Bigger Pockets Blog, and consultant on all things Arizona Foreclosures.

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