State of the Phoenix Housing Market

The worst month for home sales in Maricopa County (the greater Phoenix area) was January 2008. There were a total of 2,912 homes that closed and sold. The lowest number in 8 years or more. From there the number of homes sold each month improved with our banner month in June. In June, 2008 (5,748 homes sold) we had more homes sold than June 2007 (5,438). That started a trend where month over month we have had more homes sold than in 2007. It has continued thru the rest of the year.

What does this mean? It means we have hit the lowest spot in our market and are starting to see recovery. Does this mean housing prices are headed up again? Not necessarily. We still have an inventory of 47,396 homes on the market, and 6,139 listings waiting to close. That is still a lot of competition.

There are currently 34,846 listings under 350k. This is important because it is the FHA loan limit. And the price point of most of the home sales. Of those properties priced under 350k, 10,231 are foreclosure properties. Just under 1/3. Foreclosures are driving the market and will continue to do so for a while.

The good news is our market is showing signs of recovery for the past 6 months.

Comments

  1. Our markets are pretty similar. I actually break down my market reports that show, for example, single family home sales in December 2008, 2007, 2006 and do the same with condos, high rise, mid rise, etc. It’s so hard for the public to sift thru the crappy news to see that things are actually getting better.