We have more good news locally and nationally real estate-wise. For once in perhaps decades, we can say that the current state of the Phoenix metropolitan real estate market is bordering on healthy. Supply and demand are almost perfectly aligned, interest rates remain low, foreclosures are waning, and home values are still moving up. Well this last part may not be great news for buyers, but perhaps it can be their encouragement to move forward. Also today, the government agreed to give our country a reprieve for a few months until the next fiscal crisis comes around the corner.
First off, I want to thank Michael Orr of ASU and author of the Cromford report that I subscribe to for his nationally cutting edge statistics unmatched anywhere – at least that I’m aware of. Michael reports the following:
$121.32 is the sales $/SF averaged for all areas and types across the ARMLS (our Multiple Listing Service) database – This is 1.9% higher than was reported one month ago.
REO (Bank Owned) sales lost market share from 9.0% to 7.5% since last month. Remember, it wasn’t too long ago that 2/3 of all home sales in Arizona were either REO or Short Sales. This is a terrific turnaround.
Normal (non-distressed) sales now account for more than 85% of all sales. Short sale and REO sales for the most part are having no effect on our market pricing or movement.
The average price for “Pending” as of October 15th for normal properties is $134 PSF. This will be another monthly increase before values begin to taper off.
Orr reports that market balance between supply and demand will be reached in the first half of November. “Unless things change, the buyer will have the advantage from December on until normal conditions are restored. If demand drops so low as to be below the supply, as is increasingly likely, then any sales price increases will be based on momentum alone and not market fundamentals.”
Well things did change governmentally, which is at least temporarily good news. We can now honestly say it’s a good time to buy AND sell.
If you’re thinking of buying or selling, and perhaps you’re not sure which way to go, give me a call. My 35+ years of counsel and experience will help!
