Home prices in the Phoenix area are up nearly 34% over last year at this time! New homes sales are up 85%!
The overall number of active single family homes as of Nov 1st was 12,500 in the greater Phoenix area. It may sound like a large number, but this is actually a low number for the Phoenix area. About 3/4 of these homes are priced at $150,000 or above, so ordinary buyers in the lower price range are facing rough competition.
The shortage of these lower priced homes is a result of less distressed homes on the market. Almost half of the homes under $150,000 sold in October were cash transactions and almost 30% were investor purchases. These factors have had a domino affect on the new home market in the valley. In October new single family home sales topped 1000, the first time since 2010.
This is great news for the real estate market in Arizona. It is still a great time to buy in Arizona as home prices are still a great deal compared to a few years ago, especially in the higher end housing market.
Feel free to contact me if you are in the market for a home in Arizona
The upward price trend that started back in September of 2011 has continued and gained strength thru March 2012.
Believe it or not the overall supply is down 64% from 12 months ago. Distressed or bank owned inventory is down by 82%. The lower end homes have been affected the most, with many of these homes recieving multiple offers. I have heard of 40+ offers on a single home in less than a week. This is due to the tightening supply. Home buyers and investors are having a very difficult time aquiring properties. In my opinion the Arizona Real Estate market hit bottom quite a few months ago and is now well on its way to recovering.
The good news is that mortgage rates are still very low around 3.8% ! Most homes on the market are still below replacement cost. There are also plenty of high end homes available. Now is still a great time to buy, you just need a good Realtor and patience.
Home prices are 3-4% higher now then last year at this time. Monthly foreclosure starts are down 49% from this time last year and home sales are up 8%. What does this mean for those in the market to buy a home? Supply is down and demand is up. Buyers need to act fast to beat out the competition. If a home is priced right chances are there are multiple offers on it and many of these homes are selling above list price. It can be very frustrating making offer after offer only to be beat out by investors and other home buyers. My advice to you is to have patience and when you find the home you want don’t be afraid to be aggresive. Make sure you have a hard working Realtor that understands the current market and is involved daily with it. The housing market in the Phoenix area is changing rapidly and you need someone who will work hard for you. If you are in the market to sell; now is a great time to think about listing your home as the supply is shrinking.
Please feel free to contact me if you are in the market to buy or sell a home in Arizona.
It appears that way! Inventory is the lowest it has been in years. If you have been out looking for a home, you have probably noticed a shortage of move in ready homes. Many homes are selling for above list price and are recieving multiple offers. Do not get discouraged, just keep looking. Investors are also noticing the shortage as well as they look for good investment homes.
What does this mean?
We will see a slow, but steady increase in home prices over the next few years. It is however still a great time to buy as prices are still very low and interest rates are still at near record lows.
This past week interest rates fell to a low we have not seen in 60+ years, 30 yr fixed rates are right around 4%. It is hard to say how long we will see rates this low, now is a great time to refinance or purchase.
Approximately half of the homes for sale in Arizona are “distressed properties”, other wise known as short sales or bank foreclosures.
The average sales price for a distressed home in Arizona is about 20% below market value. The sales price typically ranges between 10% to 40% below market value!
Do not let the distressed part scare you, many of these homes are in excellent condition and are located in very desirable locations.
Most distressed property home buyers are buying due to the great deals right now. Many of these homes are selling way below the cost of replacement, which makes them a great investment.
If you are in the market for a new home or investment property, please do not hestitate to contact me.
1. Interest rates are still below 5%
2. Motivated sellers, banks and lenders are anxious to get rid of all their excess inventory.
3. Unbelievable prices, most disstressed properties are selling for between 10% to 40% below market value.
Combine all these factors and it is easy too see why investors are buying thousands of homes in Arizona. For the most part these homes are way below the cost of replacement, which makes buying a home now an excellent investment.