Phoenix Metro Market Update

OK you number junkies, check this out!

 

Now, I can’t swear to it exactly, but I would have to say (nay, repeat) that the Phoenix Metro area has some, if not the best real estate reporting in the nation from a variety of credible and intelligent – and dare I add, accurate, sources. And these sources are mostly from the private sector including our own Arizona Republic, ASU School of Real Estate and Business including Michael Orr’s Cromford Report. There is really no excuse for anyone, least of all Realtors, to not be on top of what’s happening in the local real estate numbers game. The key for Professionals is to be able to honestly cherry pick this information for our clients in a quick and painless way so that you “catch the drift” of what’s happening in our market.

 

There is really no excuse for anyone, least of all Realtors,

to not be on top of what’s happening in the local real estate market.

 

Why is this important you ask? If you can have the best available information on any given matter, you can (should) proceed wisely to make decisions, or certainly to help point others to an honest and credible source for this direction. An example would be in our current Phoenix Metro area market, that has continued to slow since last August – some have used the word “stalled.”

 

The Full report is available on our weekly blog which goes out every Monday morning. We call it “Mike’s Monday Morning Market Snapshot.”

 

 

In a Nutshell, Here are the Highlights of the data for Phoenix Metro:

 

1)     Monthly Sales are down 21% from this time last year

2)     Total inventory of homes for sale is up 46% from last year

3)     3.90 Month Supply of Available Homes for Sale – No change from last month

4)     Average sales price up 4% over last year. Median sales price up 9.7% year over year

5)     Median Sales Price Forecast from Pending Price Index for next month: No change.

6)     Foreclosures Pending: Down 49% from one year ago

7)     Average Days on Market: 83 vs. 66 last year

8)     Purchase Applications: Phoenix ranks 38th out of 50 states for new loan applications. (Note: Michael Orr stated, “We have just seen the highest percentage of sales financed by loans since November 2008.”

The Rental Market Heating up for Landlords in Phoenix

We’ve shared over the past few weeks how a lack of buyer demand for purchasing a home in the Metro Phoenix area has led to a lethargic (read: S…L…O…W) sales market.

We wrote about a number of reasons why this is happening including student loan debt, (especially the “millennials”) an apprehension about getting “stuck” in a home and mortgage like their family or friends did, and the fact that many of the millennials aren’t leaving home so quickly – hey who doesn’t like “free?”

This rental demand is leading to a rental supply shortage than we’ve seen in a while. For example, in January of this year, the median priced rental listing in the valley was $1095 and the average market time was 48 days

.

This month has seen that median price move up to $1170 and a market time drop to 31 days.

This morning, Jonathan checked on 8 potential rental listings he was going to show a new out of area client today that the client had found on Trulia. Well, in checking the availability and arranging for showings, Jon found that 6 were already rented!

It’s interesting how the current rental market parallels a hot sales market. We find we’re recommending the very same things we do for house buyers:

1)    Get pre-approved (check your current credit score and correct any mistakes)

2)    Get a good reference letter from your current landlord (hopefully) praising you for what a great renter you were (these are powerful)

3)    Be ready to jump on a deal. Don’t be too picky.

4)     Get on an automated MLS search going, but check Craigslist, Trulia, Zillow, and word of mouth also. Call Jonathan directly (602-341-9490) to get you set up on an MLS search-no cost or obligation)

One final thought: We’ve been mentioning recently how affordable home ownership is compared to renting. That gulf seems to be getting wider. If you can qualify to buy a home now, it might be a REALLY good move, even if it’s not free.