Phoenix Metro Real Estate Market Report 11/30/2011

Active Listings, 19,659 (vs 39,600 in Nov. 2010, a decline of almost 50%)

Traditional Sales 13,791 (70%)
Short Sales 3,321 (17%)
Lender Owned (REO) 2,396 (12%)
HUD 151 (1%)

A 2.6 month supply of active inventory

 Pending sales, 18,052
Traditional Sales, 18%
Short Sales 61%;
REO 16%
HUD 5%

 Closed 11/1/2011 – 10/31/2011

7,533 (vs 6,521 11/1-11/30/1, an increase of 15.5% year over year)
Traditional Sales 2,643 (35%)
Short Sales 2,210 (29%)
REO 2.320, (31%)
HUD 360 (5%)

Closed YTD 1/1-10/31/11, 86,125, an increase of 14.5% YTD 2010

 Market Data & Trends indicates Strong Signs of Recovery in the Phoenix Residential Market

Through 2010, residential property values in the metro Phoenix area showed a slowing in the percentage rate of depreciation vs. the higher rates ranging from 12-20% annually in years 2007-2009.

In, 2010 property values generally depreciated in the range of 5-10%, with the declines varying as a factor of both price point, property category (Traditional Sale, Short Sale, REO), and area/location.

The data shows a ten month trend line from the beginning of this year with stable or increasing property values, again subject to category of sale (Equity. SS, REO), price point, and location/area.

 This data trend line suggests that residential values from the lower price points through the upper middle price points have stabilized (“Bottomed-out”) or are showing moderate appreciation.

 Short Sales are the only sales category where the ten month trend line generally shows continuing depreciation in values. The continuing decline may be attributed to a number of factors:

  • Current short sale closings are “lagging data” inasmuch as most of these short sale contract were written and accepted 3-5 months ago and, in the case where the short sale contract has “fallen through” the contract may reflect data from more than six months ago;
  • For many buyers, short sales are property choices of last resort for buyers because of the lengthy and frustrating process. Because the short sale process is not “buyer friendly,” buyers are insisting on deeper discounts (a compelling “value proposition”) to endure the short sale process.
  • The seller is not generally “vested” in the property sales price as the seller is seeking forgiveness of the deficiency.
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.