I wanted to share some information that can help people who are either looking to buy foreclosed or pre-foreclosure homes in Phoenix or people who want to sell their house quickly even though they have no equity in the Phoenix area. I’ll share some market statistics for the recently completed month of November that will help increase your understanding of the Phoenix real estate market.
Phoenix area MLS ACTIVE LISTINGS in December 2011
Let’s begin with the number of homes for sale in the Phoenix MLS. The chart indicates 19,419 active homes on the market to begin December 2011. The number of active homes on the market has remained relatively stable over the last 4 months.
Here’s how to read this chart: there were 19,419 homes for sale in the Phoenix MLS to begin December 2011, a decrease of 245 homes from November 2011. 5,240 of those homes were foreclosure type listings, defined by me as bank owned (REO) homes and short sales.
The Phoenix real estate market is experiencing the lowest level of listings since the real estate boom in 2005. Back in 2005 homes were flying off the market and inventory was as low as 10,000-12,000 homes. Since that time listings have been as high as 55,000 homes in May 2008. Bottom line: if you are selling your home (even with no equity) there is less competition than there has been in a long time. This is usually a sign that we’re getting closer to a seller’s market.
The number of foreclosure type properties on the market is equal to 27% of listings in the MLS. Take note of how this number has been steadily decreasing over the last 12 months which will adversely affect a home buyers chance to buy foreclosed homes in Phoenix.
Although not indicated on this chart, the remaining 14,179 listings are what we call normal listings, or traditional home sales that are not in a foreclosure type or distressed situation. Additionally, of the 5,240 foreclosure listings 2,260 (43.1%) are bank owned (REO) homes and 2,980 (56.9%) are short sales. This is further evidence of the decreased ability for any home buyer to buy foreclosed homes in Phoenix. In our experience we have seen that bank owned properties are being listed at higher prices and often attract multiple offers.
Now let’s have a look at the sales activity for November 2011. Read this chart in the following manner: there were 7,220 sales in the Phoenix real estate market during November 2011. 2,939 (40.7%) of those sales were normal type sales. 4,281 (59.3%) of those sales were foreclosure type properties. The average sales price per square foot was $84. The $84 was derived by dividing the average sales price by the average size of the sold home ( not shown on the chart).
November 2011 home sales in the Phoenix real estate market
You will notice a couple of things from this chart:
- Home sales have decreased over the last 5 months. Some of this is due to seasonal trending. In other words, home sales during the winter are always lower. The exception was December 2010 when people were trying to take advantage of the federal home buyer’s credit.
- The number (not percentage) of normal sales has been fairly consistent over the last 5 months while the number of foreclosure sales has dropped. This is good news for normal sellers as the demand has remained consistent.
- The sale of foreclosure type properties has dropped at a fairly consistent rate. That may indicate that less investors are buying toward the end of the year.
- Price per square foot has been increasing over the last 4 months and is at the highest level since August 2010. You can expect this when normal sales are fairly consistent and foreclosure type sales are dropping, as normal sales are typically priced and sold higher.
For a more detailed look at bank owned homes (REO) versus short sales click this link: Bank Home Foreclosures Phoenix Arizona | Real Estate Short Sales
You can always get more detailed information at our Phoenix Housing Tracker.
If you want to sell your house in Phoenix when you have no equity ( typically known as a short sale) click here: Sell my house quickly in Phoenix.
Questions about the short sale process:
- Phoenix Home Seller Process FAQ’s
- Short Sale Assistance Program
- More short sale FAQ’s for Phoenix Real Estate
Inquire about Phoenix Real Estate Below!!!
