I’ve included the full slide show, and invite you to take a look.

Highlights for the Phoenix area resale market include:

1. Seven straight months where number of home sales surpassed 2007.
2. The number of 2008 homes sales surpassed 2007 by almost 10%.
3. Results from the second half of 2008 showed significant improvement over the first half of the year.
4. Sales increases are definitely being fueled by dramatic price decreases, especially in the second half of the year.
5. Bank-owned properties are a significant portion (approximately 33%) of the homes sales.
6. Bank-owned properties are priced much lower than owner sold homes, and are selling at a faster rate.

I’m in the process of looking into home sales individual cities around the valley, and will be sharing some of those highlights.  The results have been surprising and may signal some significant opportunity for buyers who have been waiting on the sidelines, looking for the bottom.

Scottsdale Real Estate Market Overview

 

Scottsdale home buyers are starting out 2009 in a real estate market that is tilted very heavily in their favor.  If you click on the chart above, you will get a full-sized version of the report,  that’s a bit easier to read.  Single family home prices (excluding condos) have fallen and are now stagnated, and it’s taking quite a while (on average) to sell a house.

In the following charts, I’ve shown single family home prices for both 2007 and 2008.  I think what is most unexpected in this chart was the notable increase in listing prices.  For Scottsdale single family homes, median list prices started surging in fall of 2007 and continued to rise until warm weather hit in April 2008.  At this point, sellers dropped prices and held them at these lower levels throughout the summer.  This past fall, you can see that prices jumped again, but have tapered off and plateaued.

Scottsdale Single Family Homes - Median List Price Comparison 2007-2008 (Click to see larger chart)

No question that homes are taking longer to sell.  Here, you can see that our upward trajectory continues at a steady pace.

Average Days on Market - 2007-2008 Comparison (Click for larger chart)

Inventory (the number of homes on the market) grew steadily throughout 2007, and has continued to fluctuate throughout 2008.  You see that the end-of-year figures for 2007 and 2008 are very similar.

2007-2008 Comparison - Number of Single Family Homes for Sale (Click for better view)

Market Action for Scottsdale Home Sales - 2007 vs. 2008 (Click for larger view)

It takes a week or so for the previous months sales figures to finalize, and then we will be into the beginning of January.  One of the reasons that I like subscribing to the Altos Research reports is that using listing data gives a glimpse of what may be coming.

I’ll post the corresponding charts for condos tomorrow.

Definition of the Market Action Index, courtesy of Altos Research:

The Market Action Index (MAI) illustrates the balance between supply and demand using a statistical function of the current rate of sale versus current inventory. An MAI value greater than 30 typically indicates a “Seller’s Market” (a.k.a. “Hot Market”) because demand is high enough to quickly gobble up available supply. A hot market will typically cause prices to rise. MAI values below 30 indicate a “Buyer’s Market” (a.k.a. “Cold Market”) where the inventory of already-listed homes is sufficient to last several months at the current rate of sales. A cold market will typically cause prices to fall.

Related Post:

Foreclosure Prevention – Resources for Scottsdale, Arizona Home Owners