April 2011 Market Conditions

Here is the April 2011 Market update from my broker at John Hall & Associates, Jim Sexton.

REO/Short Sale/Normal – What’s really selling in the Phoenix area housing market

I was looking through the charts and statistics and came across these 2.  They offer an interesting view on what homes are selling, and how much of our housing market is really about the foreclosures.

From the chart below you can see that steadily for the past 6 months the REO (bank owned properties) are about 15% of the active listings. The Short is for short sale listings running at about 35% and Normal, is a regular buyer and seller no bank involved is still 50% of the homes on the market.


Compare the above chart with this one and you can see REO (bank owned property) sales dominate. Currently about 45%, down from 55% of all the sales are REO’s.

Normal transactions having 35% of the sales (back in Nov what was thought to be the end of the home buyer tax credit and people were looking to make the home purchase happen and not mess with the banks)

The Short Sales have increased from 15 to 23%.


What does all that tell me, a few things?

1.       Bank owned homes sill offer the best value

2.        Banks are starting to approve short sales.  (it sure has taken a long time)

3.       With more short sale approvals, fewer homes are going to foreclosure

4.       And there is nothing like a home that has been loved and taken care of

This just in: People are buying homes!

Chicken Little’s  “The Sky is Falling” is everywhere in the papers.  I figured a little positive press would be welcoming.


People are buying homes!  


There it has been said, now for the proof.  January statistics are in and the Arizona Regional MLS has published their report for this month.  


January is the 8th consecutive month of increased sales comparing months year to year.  January 2009 had 4742 closings that is a 63% increase over January of 2008 with only 2912 closings.  


January 2008 was the slowest month for closing in the past 8 years.  I don’t expect we will see that 63% increase again next month.  Time will tell though. 


The closings in January and in the past few months are more comparable to those in 2001, 2002 and 2003.   This is all good news, there are still a lot of homes on the market and hopefully, we will see the inventory start to lower as well, when that happens prices will stabilize.

McCormick Ranch Sales numbers for April 2008

The numbers are looking good.  We have even reduced the number of active listings just a bit.  The total pending sales are remaining steady, and also see a bit of an incline.  The solds remain steady.  This is a good sign.  Each month we are anxious to see the pending and more importantly the sold listings remaining steady and hopefully increase.    The true test will come in the coming months.  Without all of the big crowd pleasers (Super bowl, Barrett Jackson, Nascar etc) and with the increase of our temps over the upcoming months, our northern visitors will be mostly out of the picture.  We will know in another couple of months if this was a seasonal influx or a true measure of the change in the market. 

  1-Feb-08 3-Mar-08 4-Apr-08 2-May-08
Total Active Listings 578 556 572 554
Single Family Homes 277 279 287 285
Patio/Town/Gemini Homes 157 150 167 149
Apartment style Homes 144 127 118 120
Total Pending Listings 57 72 70 79
Single Family Homes 36 33 39 37
Patio/Town/Gemini Homes 17 22 17 26
Apartment style Homes 4 17 14 16
  Jan Feb March  April
Total Sold  29 42 55 55
Single Family Homes 14 21 19 32
Patio/Town/Gemini Homes 11 17 21 14
Apartment style Homes 4 4 15 9


McCormick Ranch Home Sale Statistics

Happy New Year!

I have updated my chart with the current listing numbers and the sold homes for December.  I can see a slow but good trend for the number of properties sold going up.  With 38 closings this past month and the reduction of homes on the market, we currently have a 13.7 month supply of homes in the 85258 zip code.

Have a great day!

Click on ‘more’ to view the chart.

  Sept – 07 Oct – 07 Nov – 07 11/26/2007 2-Jan-08
Total Active Listings       568 523
Single Family Homes       264 246
Patio/Town/Gemini Homes       168 153
Apartment style Homes       136 124
Total Pending Listings       51 36
Single Family Homes       21 19
Patio/Town/Gemini Homes       17 11
Apartment style Homes       13 6
  Sept Oct Nov   Dec
Total Sold  33 34 36   38
Single Family Homes 19 20 14   17
Patio/Town/Gemini Homes 6 7 10   11
Apartment style Homes 8 7 12   10