Valley Real Estate Inventory Still Low As Prices Increase
The evidence has shown and the proof is out there, folks. The inventory is still low and the prices on homes are now going up. I looked at all the active listings on the market through the Arizona Regional Multiple Listing Service (ARMLS), as huge of a city Phoenix is, which has battled with Philadelphia as the 5th or 6th largest city in the United States, there are only 12, 842 active listings on the market. In the City of Phoenix, only 2,049 are currently active on the market. That’s it.
We have seen the supply of resale homes dropped, but the demand appear to be going up due to many short and regular sales have gone through multiple offers, and prices have increased. Still, cash buyers and investors are taking advantage. Today, there are still short sales are out there, but only 974 of the 12,842 (7.6%) are short sales. With the new Housing Refinance Programs (HARP2) that was implemented recently, it sheds a light for those refinancing eligible homeowners who are underwater on their mortgages, to keep their homes. Therefore, the active short sales have dropped. Also, only 1,042 of the 12,842 (8.1%) are Real Estate Owned (REO).
In the Phoenix Valley Metro market, we are doing a little better nationally in terms on the demand side of things. Of course, it’s the investors and the cash offers taking over this market. I read an intriguing article from today’s edition of the MNA Newswire that nationally, sales of existing homes fell May due to a lack of available homes rather than a lack of demand. Nationally, it’s probably true and it’s definitely true here. We are having a pretty good demand of real estate. However, many of those who short saled and foreclosed in real estate will have to wait for a while to become homeowners again. Here in the valley, we are in a vacation / resort like environment where the area keeps growing from those transplants from Canada and the midwest. Still, multiple offers have been brought to the table of many short sales and other listings.
Here in the Western region of the US, according to Lawrence Yun, the National Association of Realtors (NAR) chief economist, he indicated that existing-home sales in the West have declined 3.4 percent to an annual pace of 1.14 million in May. The median price in the west region was $233,900, up 13.4 percent from May 2011. For Phoenix alone, the median asking price is $199,000 for June 18, 2012, according to the information posted on the Department of Numbers‘ website. The sharp price increase in the west results largely from more sales at the upper end of the market. Yes, we have seen that here in various upscale areas of our community from Scottsdale, Fountain Hills and Paradise Valley. Those communities themselves would drive the average number up for the valley metro.
All in all, the Phoenix area is now on a rebounding stage in the real estate. I anticipate that the resale inventory will begin to increase once again. Once these prices go up, many home sellers and the REO that been held up will soon go on the market. If you as a lender owning a home, and homeowners who were not in the mess of foreclosures and short sales are looking to sell your home anytime soon, my team and I will work together to sell your home. Please call me at (480) 788-9212 and I’ll will work hard for you!