Justin Baker’s Phoenix Real Estate Market Summary:
I will begin my summary with quotes and information from Michael Orr with the Cromford Report. “Most of the foreclosure tsunuami is past us, perhaps 80%. The foreclosure notices still to come will generate short sales and 3rd party purchases at the foreclosure auction, but relatively few homes will revert to the beneficiaries. We have probably seen over 90% of the REO’s that are to be created by the 2004-2005 real estate bubble and fewer than 10% are yet to come.” (Michael Orr, the Cromford Report) To further emphasize the above commentary, less REO’s will hit our market due to the dramatic increase in the listing success rate of short sales up to 60% from 41% one year ago. Most importantly, “we can reasonably expect to see positive appreciation rates for the market as a whole for at least the next 4 months.” (Michael Orr, the Cromford Report) This is predicted based upon Pending sales prices up from $77 per sq. ft. last quarter to $81 per sq. ft. currently. Active properties (inventory) is down 41% from last year, at 26,655. If you have read my previous market updates, this number includes AWC (homes under contract like a short sale). I would rather use a more accurate Active properties inventory excluding the AWC which is 19,386 down from 38,821 one year ago. It is also important to look at and track our months of inventory. This is down from 6.7 one year ago to 3.7 months supply. Anything under 6 months is a seller’s market. With that said, all price ranges under $400k, have a less than 6 month supply of properties. Summary, “the supply remains low and steady and demand remains high and steady.” (Michael Orr, the Cromford Report) If you would like to meet, please call Justin at 480-330-7426 or e-mail him at phoenixrealestate602@gmail.com
I am happy to sit down with you to discuss your specific situation.
