Here’s the latest “Good News” from the Cromford Report:
On June 20, 2009 for “all areas and types” we recorded a Monthly Median Sales Price of $124,000, up 7.8% from the $115,000 we recorded on April 30.
This is for ALL ARMLS listings and all types of dwellings, so it represents the median across this entire market. But specific sectors may be performing quite differently. The principal reason for the price increase is the change in the market in west Phoenix, where properties below $50,000 have become much scarcer and purchase prices have risen sharply due to intense competition and reduced supply. A similar increase in pricing, but less pronounced, can be seen in many other affordable areas of the valley. In addition, lender owned properties now comprise a diminishing percentage of the total number of homes sold, diluting their power to bring the median sales price down to the extreme lows we saw in April.
Pricing above the $500,000 level is still falling, but these homes now constitute a very small part of the market compared with a few years ago.
I’m representing a number of buyers and it’s been tough to get an offer accepted in the lower price ranges. Competition is fierce, even for short sales. Multiple offers are much more the norm, rather than the exception.
If you are planning to purchase a home before the end of the year, you must get your loan pre-approval before you start looking. If you find a home before you have your paperwork in order, you will be at a real disadvantage. Lenders have geared up and are able to get you the Arizona required paper work (LSR – Loan Status Report) much more quickly. However, it does take some time, so plan ahead!
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Now if we could just get appraisers to realize that prices are heading up and not still a downward trending market life would be much better. Just a LITTLE bitter.
Dean, I’ve been pretty fortunate on this count. Have only had one come in low, and the offer was 30% over asking, so it was not totally unexpected.