Buyers Are Out Shopping - Meaningful Market Update

This summary is written by Michael Orr, creator of The Cromford Report. Michael also works for ASU analyzing the real estate market for their real estate school.

Here are the most significant stats. They are averages for the entire Valley and some areas are higher or slightly lower:
• Single family home prices are up 27% from September 2011 and continue to rise.
• Average price per square foot is up 23%
• Townhome/condo prices are up 33%
• Average ppsf is up 16%
• Overall supply was down 21% at the start of October and distressed supply was down 58% from October 2011.
• In the last 3 months, overall supply has increased 24%
• Foreclosure starts fell by 18% between August and September 2012 and are down 40% from September 2011.
• The percentage of residential properties purchased by investors remains high but is now in a downward trend.

The housing market usually slows down between Thanksgiving and New Year’s but with the prediction of another housing price bubble this Spring, many buyers are still out shopping. We are hoping that January will bring a good supply of homes to the market as supplies at many price points are running low. The rumors always fly that big banks are holding back foreclosures until the holidays are over, but it has yet to actually occur in Phoenix. Even if it should, bidders are still very active at trustee auctions and 45% fewer homes are reverting to lenders. That keeps foreclosures from coming into the active market.

Phoenix continues to be one of the fastest improving housing markets in the nation. Appreciation throughout the Valley has been high this year ranging from 26% to 34% when compared with 2011. Each zip code and neighborhood has to be studied individually for home owners to know whether they have equity again. As always, let us know if you want us to run comps for your home and we will be happy to do so. You may be pleasantly surprised!! And if you are thinking of selling or buying, now is a great time to act. Interest rates are still low but we do not know how long they will stay down.

Call or email with your questions and, as always, send buyers and sellers our way. We take very good care of all of you.  We are Family Serving Families!

Just Listed for $165,000 | 3 bed/2 bath | Glendale, AZ

This move-in-ready home has: fully updated floors (2011), fully updated roof (2011), partially updated kitchen (2011), partially updated pool (2012). Other updates include: new insulated garage door, new blinds & ceiling fans, private enclosed patio, interior & exterior paint including the back wall, solar hot water, newer AC and new sand pool filter. This beautiful home is situated on a large corner lot - one of the largest lots in the neighborhood. Home has received regular termite treatment and is under warranty. Great location near Thunderbird School of Global Management, Midwestern Medical School, Banner Thunderbird hospital, etc. Easy access to the 101 and I-17.

Click here to see the virtual tour.