This is a portion of an article written by our broker, Jim Sexton in the Arizona Journal of Real Estate and Business for December. The first half of the article deals with variables to be resolved post election by the president. Jim’s predictions follow:
“2012 will have around 90,000 sales reported by ARMLS, which will be a 10-12% drop from 2011 numbers, but the overall dollar volume of those sales will be up almost 6% from 2011. The average price per square foot will be up over 13% for 2012. Using these trends, I believe that the number of sales in 2013 will remain around 90,000, although if I could give a range it would be 85,000-95,000 sales for the year. I think prices will continue to bounce back. I don’t expect another 13% increase, but I see a price improvement in the 5-8% range. I expect active inventory to rise from the current less than 3 month supply to the more balanced 3-4 month supply. Both short sales and REOs
will continue to decrease. Distressed properties made up 70% of the market 2 years ago, 65% 1 year ago and currently are at 41%. Look for that downward trend to continue to under 30%, with REOs below 10% and short sales dropping to around 20%. Also expect to seeArizona’s population continue to grow and the building industry inPhoenix‘rise from the ashes’. Both will continue the positive steps we’ve seen to our economic recovery for the region.”
Based on Jim’s experience, knowledge and his great batting average we are expecting that 2013 will be a successful and positive year for real estate in our Valley of the Sun.