photo credit: kevygee
I’ve been inundated with new business in the past couple of weeks, which I always appreciate. And finally, some of the stats are starting to validate what many Realtors have been talking about for the past couple of months. Buyers are shopping, and they are buying.
I’m working with all types of buyers right now: first-time, move-up, relocation, vacation home, retirement, and investors. With all types of financing: Conventional, FHA, and cash. Buying: Short sales, foreclosures, and typical sales, both resale and new homes.
My opinion is that the Scottsdale real estate market is healthier that much of the media has been reporting on.
ARMLS has a great monthly report that report on pending sales. However, to get to a pending sale, buyers have to be out looking, first on the Internet and then in real life.
Many buyers are starting out with the assumption that they can throw an offer out there and get a great deal. What they are quickly finding is that they have competition from all the other buyers out there. Multiple offers. Best and final. Language that buyers quickly come to find are much more common than they ever anticipated.
What is difficult to report is the scope of this new business. The number of people that are out looking. The number of people flying in to view homes. It’s only the middle of May and I have four appointments pending in June with people flying in to buy homes. Most people who fly in to look at homes are very serious about it. And my sense is that people have this sense that prices are low and not going (much, if any) lower.
None of us have a crystal ball, but many of the indicators are really starting to show an improving real estate market.
From the Cromford Report – April 2011, prepared for the Old Republic Title Agency:
Generally speaking, for all price ranges:
- Supply continues to decline and demand remains at a high level almost everywhere.
- Having hit bottom in January and February, average pricing per sq. ft. is now moving higher.
- Buyers are very active at all price levels, and multiple offers are becoming commonplace.
- Pending foreclosure counts are dropping at an accelerating rate.
And then the news gets even better when you look at the price range reports:
Homes under $100,000:
- Extremely strong demand and falling supply. Prices now stable for four months.
- Demand is strong with sales up 41.5% over the same time last year.
- This supply continues to gradually shift away from REOs (down 10.7% in one month) toward short sales
Homes Between $100,000 and $200,000
- Supply down and demand strongly up. Pricing remains stable.
- Demand has also strengthened nicely over the last month.
- Short sales and pre-foreclosures declined from 22% to 20% of sales.
Homes between $200,000 and $400,000
- The balance between supply and demand continues to improve. Recovery is well under way.
- The reduction in supply was coupled with an increase in demand.
- Normal sales retained a 56%market share.
- This sector remains very stable and the short term outlook is positive, particularly for homes over $300,000
Homes between $400,000 and $800,000
- Supply falling faster now and demand rising quickly too. Sales prices are increasing!
- The sales volume was very strong in April.
- Short sales took a 19% market share while normal sales rose to 68%
Homes over $800,000
- Demand stronger while supply slowly declines. Recover is under way.
- Supply now lower than at any time in the last three years.
- Active REOs increased but these represent only 2.6% of total active listings.
- The improved demand is a good sign for this sector and although there is still plenty of supply, 88% of this supply is NOT distressed. Thus we see pricing continuing to firm up.
For a copy of the full report, just fill out the contact form in the right hand column (“Have a question?”), and I’ll send a copy your way.