by Dru Bloomfield on August 2, 2009
Today, I’m looking at a couple markets that I am spending quite a bit of time in, and have used a couple of Cromford Report charts that will give you a good idea of:
- The decreasing number of homes for sale in Phoenix, Scottsdale, and Paradise Valley.
- The significant increase in REO (bank-owned) listings, particularly in the city of Phoenix.
- The number of homes for sale in Phoenix is stabilizing.
Also, we are seeing:
- An increase in short sales in Paradise Valley.
- A very slight increase in bank-owned homes for sale in Paradise Valley.
And:
- A reduced number of normal sales in Scottsdale. These are homes that are not short sales or foreclosures.
- Overall, number of Scottsdale homes on the market has decreased between March and June and has remained stable since then.
I expect some changes as we end the year. As the weather cools off, and the $8,000 tax credit deadline gets closer, buyers will be even more motivated to complete a home purchase. The time it take to close a short sales can be drawn out and unpredictable, so we could well see a continued decrease in the number of “normal” homes selling.
by Dru Bloomfield on June 3, 2009
Yes, the number of homes for sale in the Phoenix Metro market is dropping, and this inventory reduction is creeping into the higher price ranges, but Scottsdale has yet to see the surge and record setting sales that most of the rest of the valley have been experiencing.
Over at Click2AZ.com, I recently wrote A Shortage of Homes for Sale in Phoenix?:
As of April 5th, homes priced in the range of $175,000 were clearly in the seller’s market range, which is typically defined as 5 months or less of inventory. Homes priced in the range of $175,000-$275,000 (and maybe $300,000) are in the range, called a balanced market. All the higher price ranges, show a buyer’s market.
One month later, May 5th, shows a changed market. Homes priced in the range of $225,000 are clearly in the seller’s market range. while homes priced in the range of $225,000-$350,000 are experiencing a more balanced market. All the higher price ranges, show a buyer’s market.
In another week or so, we’ll see how things look, but I expect the lower end of the market to show an even lower supply of homes for sale, and hopefully, we’ll see that there’s been more activity in mid and upper ranges of the market.
Yet, with extremely tight lending standards for jumbo loans ($417,000 and higher), we may hit a ceiling. I hear lenders, buyer, and real estate agents all indicating this higher end of the market will be impacted until there are some changes made, but it does sound like there may be some signs of hope.
Scottsdale is particularly impacted by the jumbo loan situation. With an average home price of $611,678, and a median price of $437,500 (based on annual sales data), a significant portion of our market relies on these larger loans for financing. Many of the home purchases in the lower price ranges are cash or FHA financing, but other options are needed for many Scottsdale home purchases.
by Dru Bloomfield on June 2, 2009
Yes, the number of homes for sale in the Phoenix Metro market is dropping, and this inventory reduction is creeping into the higher price ranges.
As of April 5th, homes priced in the range of $175,000 were clearly in the seller’s market range, which is typically defined as 5 months or less of inventory. Homes priced in the range of $175,000-$275,000 (and maybe $300,000) are in the range, called a balanced market. All the higher price ranges, show a buyer’s market.
One month later, May 5th, shows a changed market. Homes priced in the range of $225,000 are clearly in the seller’s market range. while homes priced in the range of $225,000-$350,000 are experiencing a more balanced market. All the higher price ranges, show a buyer’s market.
In another week or so, we’ll see how things look, but I expect the lower end of the market to show an even lower supply of homes for sale, and hopefully, we’ll see that there’s been more activity in mid and upper ranges of the market.
Yet, with extremely tight lending standards for jumbo loans ($417,000 and higher), we may hit a ceiling. I hear lenders, buyer, and real estate agents all indicating this higher end of the market will be impacted until there are some changes made, but it does sound like there may be some signs of hope.
Stay tuned.
