Hey is that a new word? Nah, but it seems to fit better.
As is our custom, we want to continue providing you with the very best and latest real estate market data available, and we’ve got it, via Michael Orr’s Cromford report that the Bodeen Team subscribes to. By doing so, Orr gives us permission to share with our clients and friends this cutting edge information.
What we appreciate about Orr’s data is that it often transcends the MLS, which is very good information, but much of the research by Orr goes into the public records, which the MLS does not, unless specifically mentioned otherwise, such as Orr’s following report for July 2014:
Here are the basic MLS numbers for August 1, 2014 relative to August 1, 2013 for all areas & types:
The Bodeen market summation for those not wanting to be bored by the minutiae:
— Fewer Buyers. Fewer Contracts. Less Demand. Marginal Price Drop —
- Active Listings: 23,900 versus 16,456 last year – up 45.2% – but down 2.2% from 24,440 last month
- Pending Listings: 6,079 versus 7,755 last year – down 21.6% – and down 5.4% from 6,426 last month
- Monthly Sales: 6,805 versus 8,076 last year – down 15.7% – and down 6.4% from 7,271 last month
- Monthly Average Sales Price per Sq. Ft.: $126.53 versus $119.65 last year – up 5.8% – but down 2.3% from $129.56 last month
- Monthly Median Sales Price: $196,790 versus $185,000 last year – up 6.4% – but down 0.1% from $197,000 last month
- 30 Year Mortgage Rate with 740+ Fico, 20% Down Payment: 4.00% (*Source: Bankrate.com)
Similar to last month, active listings rose 4.9% between July 1 and August 1 in 2013 but fell this year by 2.2%. This weakness in supply is very unusual, but is hardly getting noticed because it is overshadowed by the prolonged weakness in demand.
There are a few strong areas in this market where demand exceeds supply. These include Sun Lakes, Sun City West and Sun City. Clearly baby boomers are doing their bit. Paradise Valley, Scottsdale, Fountain Hills and Gold Canyon have all improved their balance because supply has declined faster than the rest of the valley. In general, the higher you go in price range the better demand has held up.
All the talk of loan underwriters getting more flexible has not resulted in much change in buying patterns so far. Mortgage applications are low. Perhaps potential buyers assume they will either get turned down or have to provide too much documentation. Nationally too, purchase loan application rates remain weak according to the July 30 report from the Mortgage Bankers Association.
All This is to say, “It remains a very opportune time to buy!”