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Phoenix Residential Market Report ~ August 2015

Real Time_Supply

Pie Chart_Market

Average Sold Price_Monthly

Average Days on Market_Monthly

Active vs Sold Transactions2

Foreclosures_Monthly

Short Sales_Monthly

The current real time market profile shows there were approximately 9,243 new listings (down from last month) on the market in July 2015 and 7,972 sold transactions. Since the beginning of the year the number of new listings has exceeded the number of sold transaction but the number of total listing has consistently decreased since April 2014.

Since August 2014 (12 months ago), the average sold price has increased approximately +4.0% (down from last month), the average days on market have decreased approximately -13.8% (down from last month) and the number of sold transaction has increased approximately +26.2% (down from last month). Since the month of May 2014 the average sold price has teeter tottered up and down with no upward trend but in April 2015 the average sold price jumped higher than the last 12 months. The summer buying season has been strong with a +2.1% increase in price since April 2015. The current average sold price is approximately $263,000 which is up since March 2015. This second month of price increases is a strong indication of a market reversal from the real estate market we experienced in 2014. Let’s hope the market continues its upward trend throughout the rest of the summer buying season.

The volume of foreclosure purchases since August 2014 (12 months ago) has decreased approximately -37.2% and the volume of short sales have increased approximately -34.4%. Since August 2014 the volume of foreclosure purchases went up and now the trend is back down once again. Since August 2013 the volume of short sale purchases have consistently decreased because the inventory of homes “up-side-down” have been exhausted and values have risen to a point where consumers can break-even or sell with some equity.

Since August 2014 (12 months ago), the number of homes for sale on the market have decreased approximately -15.1% or 26,076 homes for sale on the market to a gradually decrease of 22,129 homes. This decrease in the number of homes for sale could be a sign the market is beginning to shift once again back to a seller’s market (low supply and increased demand).

Real estate prices are still relatively low (near 2008 prices), mortgage rates are still at a historical low and the macroeconomic market is improving both in terms of prices and the overall economy. Give us a call to discuss your best investment strategy, TODAY!!

Position Realty
Office: 480-213-5251

Phoenix Residential Market Report Summary – April 2014

As you can see from the first chart above, Position Realty Market Index, the first time home buyer tax credit created a great deal of demand in the market similar to the real estate boom from 2004 to 2006. Currently the number of transactions is slowing down as a result there is an increase in inventory because the number of listings is not being purchased at a fast enough rate.

Since May 2013 (12 months ago), the average sold price has increased approximately +4.0% (down from last month), the average days on market have increased approximately +29.7% (up from last month) and the number of transaction has decreased approximately -15.9% (up from last month). Since the month of September the average sold price has teeter tottered up and down with no upward trend. This is good news since the market has not formed a downward trend. We will not see an indication of a market reversal until there have been two to three consecutive months of upward or downward pressure on the average sold price, DOM and number of transactions. The current average sold price is approximately $252,000 which is down approximately -1.9% from last month at $257,000.

The volume of REO purchases since May 2013 (12 months ago) has decreased approximately -44.6% and the volume of short sales have decreased approximately -74.4%. Since October 2013 the volume of REO purchases has increased approximately +11.1%. The volume of REO purchases is rising again because Fannie Mae and institutional lenders have been holding onto inventory and they are starting to release their inventory at a faster rate. The volume of short sales are still down but REO purchases are back on the rise.

Since May 2013 (12 months ago), the number of homes for sale on the market have increased approximately +50.6%. This increase in the number of listings is caused by investors leaving the market and sellers that purchased during the real estate boom are putting their homes on the market to break-even or sell with a small amount of equity. Real estate prices have reached a point where sellers are listing their homes at a faster rate than buyers are purchasing. This has not cause a decrease in real estate prices and as we enter the Spring / Summer buying season we are seeing an increase in the number of sold homes.

As more and more sellers enter the market and as more of the supply of residential homes increase, real estate prices may start to decrease (more supply and weaker demand causes prices to decrease).Real estate prices are still at an all time low (near 2008 prices), mortgage rates are still at a historical low and the market is improving both in terms of prices and the overall economy. Give us a call to discuss your best investment strategy, TODAY!!

Position Realty
Office: 480-213-5251

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