- Joined
- Jul 14, 2009
- Messages
- 28
Greater Phoenix (Arizona) Market Headlines
 In every price range, sales prices in $/SF are now higher than a year ago.
 Inventory is still falling below $200,000 and constraining sales volumes.
 Above $200,000, supply is rising and demand remains relatively weak.
 After a noticeable weak patch during the summer, prices have regained strength.
 Lender-owned inventory is falling fast, especially at the lower price levels.
 Short sales are overtaking foreclosures as the primary mechanism to resolve mortgage debt problems.
Overview
November is normally a relatively weak month for residential real estate demand and this year is no exception. However, inventory is not building the way it normally does at this time of year. In fact for homes under $200,000 inventory is still falling from already low levels and is becoming a major constraint on the market below $100,000. For homes over $200,000 there has been a distinct rise in inventory over the last 3 months. You might expect this to weaken prices, but in fact pricing has been remarkably stable for all ranges over $200,000. Below $200,000 the low supply is creating strong upward price pressure and sales pricing is now at its highest since the summer of 2010. Demand from owner occupiers remains relatively weak due to the difficult financing climate, but landlords and other investors are quickly snapping up a large part of whatever comes onto the market and so sellers, especially lenders, are raising their prices quickly.
The supply from foreclosures continues to fall very fast and short sales are becoming a more important part of the picture. Lenders are receiving far fewer homes into REO inventory as a much larger percentage of the trustee sales result in a sale to a third party.
It may be hard to find anyone to believe it, but the fact is that average price per sq. ft. is now higher than in November 2010 at every price range. Even the weakest range, $200,000 to $400,000, is up by 0.3% over the year. Currently the strongest recent movement is for the lowest price ranges, but even at the higher price points we can see very stable pricing has persisted for over a year now. Yet even appraisers, who are well connected to market price data, still routinely refer to the market as `declining`. It takes a long time for the facts to get absorbed into the public sentiment. (Source - Cromford Report)
 In every price range, sales prices in $/SF are now higher than a year ago.
 Inventory is still falling below $200,000 and constraining sales volumes.
 Above $200,000, supply is rising and demand remains relatively weak.
 After a noticeable weak patch during the summer, prices have regained strength.
 Lender-owned inventory is falling fast, especially at the lower price levels.
 Short sales are overtaking foreclosures as the primary mechanism to resolve mortgage debt problems.
Overview
November is normally a relatively weak month for residential real estate demand and this year is no exception. However, inventory is not building the way it normally does at this time of year. In fact for homes under $200,000 inventory is still falling from already low levels and is becoming a major constraint on the market below $100,000. For homes over $200,000 there has been a distinct rise in inventory over the last 3 months. You might expect this to weaken prices, but in fact pricing has been remarkably stable for all ranges over $200,000. Below $200,000 the low supply is creating strong upward price pressure and sales pricing is now at its highest since the summer of 2010. Demand from owner occupiers remains relatively weak due to the difficult financing climate, but landlords and other investors are quickly snapping up a large part of whatever comes onto the market and so sellers, especially lenders, are raising their prices quickly.
The supply from foreclosures continues to fall very fast and short sales are becoming a more important part of the picture. Lenders are receiving far fewer homes into REO inventory as a much larger percentage of the trustee sales result in a sale to a third party.
It may be hard to find anyone to believe it, but the fact is that average price per sq. ft. is now higher than in November 2010 at every price range. Even the weakest range, $200,000 to $400,000, is up by 0.3% over the year. Currently the strongest recent movement is for the lowest price ranges, but even at the higher price points we can see very stable pricing has persisted for over a year now. Yet even appraisers, who are well connected to market price data, still routinely refer to the market as `declining`. It takes a long time for the facts to get absorbed into the public sentiment. (Source - Cromford Report)