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ARIZONA REAL ESTATE MARKET ANALYSIS May 27, 2008. Here's the latest scoop on the Local Real Estate Market... CURRENT STATS - Arizona Regional Multiple Listing Stats: Current active listings 54,221. Solds from April 1, 2008 to April 30, 2008 - 4871. That means at the current rate of sales we have over an 11 month supply of inventory. That's an improvement from the recent 16+ months of inventory on the market just 3 months ago. There seems to be some deceleration of depreciation depending on location and price range. Of the 4871 sold properties during the month of April, 3896 (or 80%) are under $350,000. The above stats indicate that the bulk of the sales activity is currently at the "lower end" of each sub market - So what's the "lower end" of the market? This varies. In Queen Creek - the lower end of the market is currently below $150,000. In North Phoenix that lower end tends to be under $250,000. In Scottsdale and some of the more pricey areas it is generally under $350,000. In some of the East Valley communities it varies depending on how "far out" the community being referenced is located.
ADVENTURES IN THE CURRENT REAL ESTATE MARKET- There's much opportunity in this current real estate market for those with the patience and skill to use the market conditions to their advantage. The following events took place from February through April of 2008. Recently, I helped some folks sell a smaller property in north Phoenix (a little over 1300 sq.ft.) for around $235,000. The property was prepared carefully for market to make it truly "Market Ready" and priced realistically for the current market conditions. This home in this neighborhood would have gone for about $280,000 during the "crazy run-up in appreciation" experienced in 2004-2005. The home was listed for sale in mid February 2008 and sold (was in escrow) in 36 days. The home home these folks bought (almost 4000 sq.ft.) had sold 10/2006 for $600,000. They bought this newer, larger home for about $380,000. The escrow was closed in Mid April 2008. So they traded the $45K they would have gotten in a "Seller's Market" for the $220K discount they got in this "Buyer's Market". This is a net advantage of $175,000. Most folks would take this trade every day of the week. We haven't seen the kind of "buying opportunities" we are now experiencing since the "RTC (Resolution Trust Corporation) days" of the late 1980's and early 1990's. The current conditions will last for awhile. However, once the market stabilizes and inventories shrink don't look for "Buying Conditions" to be this good again for another 15 - 20 years.
REO STATS - Bank Owned (R.E.O.) properties active listings stand currently at 5228. During the month of April 1180 R.E.O. properties sold. The condition of bank owned properties in general is grim. Don't be fooled into thinking that all bank owned (R.E.O.) properties are great deals. Some are... some aren't. Don't make the bank's problems yours. CAUTION! WITHOUT EXTREME DUE DILLIGENCE AND CARFUL, OBJECTIVE COMP ANALYSIS DO NOT BUY REO PROPERTIES. THESE PROPERTIES ARE NOT WARRANTED. WHICH LOCATIONS WILL "COME BACK" TO MARKET HEALTH FIRST? - Generally look for communities within the 101 beltway to stabilize and return to market health before more remote communities. The one exception to this may well be the Queen Creek area - currently one of the hardest hit communities. Williams-Gateway expansion should stimulate this area considerably. Hope you all had a safe memorial day and took a few moments to REMEMBER OUR VETS.
Stay well and prosper, Mary Remember - The Phoenix Metro Area is a Mega Market. Sub-markets within the area differ widely on appreciation/depreciation rates, number of days to sell properties etc. For an analysis on a particular "Sub-Market" or Subdivision -
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