Phoenix homes for sale
Metro Phoenix Real Estate Market Is Looking Up!
June 2010 results are now available for homes in Phoenix for sale and closed sales. As compared to May 2010, the average sales price of Single Family Detached homes is up 10% to $203,417, median sales price is up 6%, days on market are down 3% to 79 days and homes are selling for 98% of list!
The number of sales and the average sales price of homes in Scottsdale and Mesa homes for sale AZ are up and the number of days on market to sell are down as compared to a year ago June 2009 and as compared to a month ago May 2010! Even more impressive — these STATS apply to both detached and attached property types in both communities!
Also on the honor roll of high performing real estate markets are Phoenix, Tempe, Gilbert and Chandler homes for sale AZ – all reporting the average Single Family home sales price is also up!
In spite of the end to the First Time and Long Time home buyers Tax Credit, buyer demand remains strong with the number of sales exceeding sales during May 2010 – keeping the available inventory of homes for sale low.
Mortgage rates are under 5% and prices are 50% below where they were at the peak in 2006. Fence sitters are going to miss out on a terrific home buying opportunity if they continue to wait. The Phoenix real estate market bottomed out last spring. High buyer demand and low inventory levels are going to push prices higher than they are now. Don’t miss out!
For all the details about the real estate market in your favorite area, go to Phoenix real estate market conditions.
Sam Elam, Associate Broker, ABR, CRS, GRI, e-PRO, SFR, Prudential Arizona Properties (480) 213-1799
Phoenix Homes Sales Soar in March 2010
PHOENIX HOMES SALES SOAR IN MARCH 2010
Arizona Regional MLS (ARMLS) data shows March 2010 Phoenix Homes Sales of 8969 properties is a 39% increase over February 2010 sales numbers and a 19% increase over sales a year ago during March 2009! We’re not “out of the woods” yet, but indicators point to an improving Phoenix real estate market.
OTHER GOOD NEWS
The number of Traditional (non-distressed) Sales of Phoenix homes matched the number of sales of REO or Foreclosed Phoenix homes with each representing 40% of March sales. Short sales lagged at 20% of Sales.
This indicates buyers are looking for homes that are a very good value and are salable – as the tax credit deadline of April 30, 2010 deadline to have the property in escrow rapidly approaches.
Phoenix Average and Median Home Sales Prices increased slightly and remain above where they were when the Phoenix real estate market bottomed out in the Spring of 2009.
Builders continue to build new homes since buyers are willing to pay a substantial premium to purchase a brand new home. As a result, the number of actively selling new home subdivisions reversed direction and have increased modestly and so have the number of Spec homes being built in anticipation of buyer purchases.
WHAT CAN WE EXPECT?
If the jobs market stabilizes and starts to improve, buyer demand for homes remains strong after the tax incentives expire this month, interest rates remain low since the government stopped buying mortgage backed securities in March, lenders don’t saturate our resale market with foreclosed REO properties, and Freddie Mac/Fannie Mae and responsible banks continue to rehab foreclosed homes before putting them up for sale, we should continue to see an improving Phoenix real estate market. That’s a lot of “ifs”. We’ll just have to wait and see what happens next month. Stay tuned!
Sam Elam, ABR, CRS, GRI, e-PRO, Associate Broker, Prudential Arizona Properties http://www.SamElam.com
FHA Home Loan Costs to buy Phoenix Homes for Sale Increase
FHA Loan Policy Changes impact loan acquisition costs by reducing the maximum amount of buyer closing costs a seller can pay on behalf of the buyers from 6% to 3% of the total sales price. At the same time FHA is increasing the up-front Mortgage Insurance Premium from 1.75% to 2.25% of the loan amount to be paid at close of escrow or rolled into the new home loan. If approved, FHA will also consider increasing the annual MIP payment. Details to follow upon approval of their recommendation.
FHA is qualifying buyers based upon their FICO score to the extent that those with a FICO score below 580 are eligible for a 90% LTV loan with the minimum down payment increased from 3.5% to 10%. Read the new FHA Loan Policy for more details.
These policy changes show the U.S. government is no longer willing to make what they perceive to be higher risk loans at very favorable loan terms. With the rampant loan defaults and huge amount of government deficit spending, loan interest rates will eventually rise.
Those buyers waiting for the opportune time to buy have already missed their chance. The Phoenix real estate market bottomed out in March/April 2009 and average prices of Chandler, Gilbert, Mesa, Scottsdale and Phoenix homes have gone up since.
If you continue to wait, you may be priced out of the market as higher loan costs and mortgage interest rates rise. Buy now to lock in a fixed rate loan that are historically very low levels and to take advantage of the First Time and Repeat Home Buyer tax credit (Up to $8000 and $6500, respectively) by contracting by April 30 and closing by June 30. This primer at explains New Home and Existing Home tax credits and how you can take advantage of them. Hurry before they expire. Call Sam Elam for assistance with your next home purchase.
For assistance with the purchase of one of our homes in Chandler, Phoenix, Scottsdale, Gilbert, Mesa or Tempe contact:
Sam Elam, Associate Broker, Prudential Arizona Properties, (480) 213-1799 or SamElam3@gmail.com
Additional buyer resource information and MLS access visit: Phoenix homes for sale – Phoenix real estate & investments
December 2009 Phoenix real estate market conditions
Quick Summary of Phoenix real estate – December 2009 market conditions
Sales are up
December 2009 sales are up 2% over November 2009 and up 39% over December 2008. The number of Phoenix real estate transactions rebounded back close to what they were before the downturn. In fact 2009 sales exceeded 2008 sales by 55%!
Prices of Phoenix homes for sale are down
Unfortunately the increase in the number of transactions has come at the expense of sales price. Our median sales price is off 52% from the peak median price of $264,800 in June 2006. Prices have been sliding since, but bottomed out in April 2009 at $115,500 and closed the year at $126,000.
Our December average sales price increased to $177,572, because more high-end REO homes sold. At this point our average and median sales price are back to where they were in February/March 2001. We have bargains galore!
Of the homes that SOLD in December 2009:
23% were Short Sales
34% were Traditional, Non-distressed Sales
43% were Bank Owned or REO Sales
50% of our Active inventory is Traditional listings
50% of our Active inventory is either Short Sale or REO listings
As a ratio of Active listings of homes in Phoenix by listing type to December Sales:
12.5% of the Short Sale inventory sold with Short Sales being 36% of Active inventory
13 % of the Traditional inventory sold with Traditionals being 50% of Active inventory
58% of the Bank Owned/REO inventory sold with REOs being 14% of Active inventory
There are not as many REO listings as one might expect, but banks price them to sell quickly!
Also noteworthy, there are more Traditional (non-distressed) sales closing escrow than Short Sales.
We see owners of non-distressed properties can sell their home. Buyers will pay premium prices for Phoenix homes that are saleable (don’t require approval to sell), in good condition (with all repairs done before it is listed for sale), staged properly (cleaned, de-cluttered and painted as needed) and easy to show on a moment’s notice (dishes washed, beds made, trash out, clothes in the washing machine and tidy).
I am cautiously optimistic the Phoenix real estate market has “turned the corner”. My expectation is our market will continue to improve, but we’ll see minor ups and downs in trends during 2010.
Check out market statistics for Arizona condos and homes in Phoenix, Scottsdale, Chandler, Gilbert, Mesa and Tempe for sale at http://bit.ly/4qpcHJ. Real estate is local and the breakdown by city will be helpful.
Author:
Sam Elam, Associate Broker, Prudential Arizona Properties, Gilbert, AZ (480) 213-1799
SamElam3@gmail.com http://www.SamElam.com