Chandler AZ and surrounding East Valley real estate update

chandler real estate market updateAnother Amy Jones Group listing with multiple offers received within 24 hours of hitting the mls.   This is becoming the “new norm” for us and other agents around the Valley.  Our inventory of homes for sale in the Valley continues to fall which is creating a supply and demand issue. Good news for sellers…not so good news for buyers who have been waiting for the bottom and may have missed it.

So, buyers…listen up.  It’s time to readjust your thinking. Due to our low inventory, we are no longer in a buyer’s market. Lowball offers are are going to fall on deaf ears. If the home is priced fairly (within comparable market value) and is move-in ready with few repairs needed, it is typically selling very close to list price in a matter of days, if not hours.

We are seeing bidding wars on homes which is slowly driving sales prices up, especially in homes priced under $300,000.  Following is the information just released by the Arizona Regional MLS.

July sales (8,387) in the Valley represented an 18.1% increase over July 2010. This figure, while disappointing after the June’s emotional and numerical high (11,125), follows a typical June to July sales pattern, where sales fell from June to July in eight of last ten years.

New inventory dropped again in July to 9,140, besting December’s twelve month low of 9,443. New inventory added each month has traveled on a downward trend line since last August. Declines in new inventory affect the current supply and are recognized as a healthy sign.

Total inventory in July continued its decline started in November. July’s figure (27,663) is a 5.3% decline from June and a 35.5% drop from July 2010. The Valley’s large inventory perpetuates the market’s imbalance in many market niches, and the steady decline in total inventory is a vital component in righting the supply and demand balance.

New list pricing continues on the anemic flat line of the last twelve months. The median new list price ticked up 4% to $124,900, while the average fell .9% to $188,700 from last month’s $190,400. The median price is 3.9% below last year’s July median, and the aver-age is 5% lower than July of 2010.

Foreclosures pending continued a sharp, steady downward trajectory for another month. Total foreclosures pending for July were 25,073, down from last month’s 27,616, and crossed below the 2008 inclining foreclosures pending trend line. If the current trajectory holds true, it is highly likely that foreclosures pending will drop to the 10,000 mark by year end, a level not seen since September 2007. While the total number of foreclosures in the system remains high, declines in the foreclosures pending, the replenishment source for lender owned properties, signal an eventual end to the foreclosure oversupply. This is a positive indicator of better times to come.

Lender owned sales (3,614) accounted for 43.1% of total sales in July, up 2.3% over June’s percentage. These sales hovered between 46.2% and 40.8% since March, still ac-counting for a significant portion of total Valley sales. Future declines in this metric must occur for Valley prices to rise.

Average days on market (DOM) dropped to 100 days in July, a low not seen since July 2010. For the last 24 months DOM has fluctuated between 90 and 116, with an average of 101.

A local real estate expert panel counseled that now is not the time to buy just one house, but rather two or three. The current affordability of the Valley’s housing market is unprecedented, and for those with the cash and the credit to act, the investment is sound and bound to pay off in the future. For now many factors are affecting jobs over which we have no control, e.g., oil prices, acts of God, general business confidence, etc. All panelists predicted 2013-2014 when asked when they expected the Valley to recover.

THIS real estate “expert” thinks we are starting to see signs of a recovery right now. Stay tuned!

About The Amy Jones Group

Mindy Jones Nevarez is the owner of Amy Jones Group Keller Williams Integrity First. The Amy Jones Real Estate Group has been recognized as the #1 Real Estate Team in Chandler by the Phoenix Business Journal and voted Best of Our Valley for 4 years.

The Amy Jones Group specializes in real estate in Chandler, Sun Lakes, Gilbert, Mesa, Tempe, Ahwatukee, and Phoenix.