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 December 2009 to November 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 December 2009 to November 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 -6.8% (down from last month), the average days on market have increased approximately +10.4% (down from last month) and the number of transaction has decreased approximately -27.0% (up from last month). Since the beginning of January 2010, the average sold price has decreased approximately -9.1%, the average day on market has increased approximately +17.8% and the number of transactions has increased approximately +16.2%, 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. Since we entered into the holiday season, the market has remained fairly stable after the readjustment in the market from the tax credits, as seen in the charts above.
The number of Notice of Trustee Sales is currently on a steep decline which is typical since according to the historical charts for 2008 to 2009 the number of notices declined during the holiday seasons.. The number of notices is currently below the number for 2008 and 2009 but is unlikely to fall below the 2007 figures for at least another two years and it could continue its progression upward after the holiday season is over. The number of trustee’s deeds issued at the trustee auctions is also on a steep decline which means the competition for trustee properties has declined over the last two months. 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 trustee sale foreclosures has declined but the demand for REO properties has stayed fairly consistent. It is impossible for real estate prices to go down much further since the market will eventually reach a level of equilibrium where demand will exceed supply and all buyers will rush into the market to take advantage of low prices before the prices start to increase. A lot of investors and home buyer have already realized that now is the best time to buyer while prices are low. The year 2011 will be a better year for the real estate market as a whole.
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