Phoenix Real Estate Market Report Summary
The comparisons of current active listings are based on the current inventory as of September 16, 2010. This data includes single family detached homes, patio homes, condos, and townhomes provided by the Arizona Multiple Listing Service. The monthly charts above are based on trailing twelve monthly averages from September 2009 to August 2010 which shows the total activity in the Phoenix Metropolitan real estate market over a twelve month period. The yearly charts above are based on a yearly average for 2005 to 2009 but a trailing twelve month average from October 2009 to September 2010 for the year 2010. Without the trailing twelve month average for the year 2010, the charts would be substantially skewed and would not portray an accurate view of the market on an annual basis.
Since the expiration of the first time home buyer tax credit on April 30, 2010, the real estate market has decreased in the average sold price and number of transactions. Since April 2010, the average sold price has decreased approximately -9.7%, the average days on market have increased approximately +11.7% and the number of transaction has decreased approximately -25.0%. Since the beginning of January 2010, the average sold price has decreased approximately -9.2%, the average day on market has increased approximately +16.7% and the number of transactions has increased approximately +17.5%, despite the decrease from the tax credits. Based on this information, it appears that demand in the market is weak since the expiration of the first time home buyer tax credit, which is expected when the government withdrawals stimulus from the market. As we go into the holiday season, the market is expected to see a continued decrease in the average sold price and number of transactions and a continued increase in the average days on market.
The number of Notice of Trustee Sales is currently on the rise but according to the historical charts for 2006 to 2007 the number of notices start to increase around June and July. The number of notices is currently below the number for 2009 but if the number of notices continues its steep progression upwards, then it will surpass the figures for 2009. The number of trustee’s deeds issued at the trustee auctions is rising which means the competition for trustee properties are at an all time high. There is a large amount of properties sold at the court house steps but there is still a large amount of REO properties sold through the MLS. Although a large amount of foreclosures are being absorbed, the market will continue to see more and more foreclosures until the economy improves. According to the above market statistics, the demand for foreclosures is rising as the average sold price continues to decrease. A lot of investors and buyer have realized that now is the best time to buyer while prices are low.
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