In 2007, when the real estate market began its steep decline, the question on everyone’s mind was, “When will things turn around?”
Many experts said, “… the middle of 2011,” and we all gasped at the thought of the turnaround taking four years. Well, here we are, smack dab in the middle of 2011, and the turnaround seems to be right on schedule.
Here are some interesting statistics from the June issue of the Cromford Report, a market review of the Phoenix metropolitan area residential re-sale real estate market.
Sales
A total of 9,814 sales were recorded in May. This is up 3.5 percent over April and up 10 percent over May 2010. This is a very strong indicator when you consider May 2010 sales were by the government’s Homebuyer Tax Credit. Interestingly, in Maricopa County in May 2011, non-Arizona residents made almost 30 percent of home purchases. The average over the last 10 years was just shy of 12 percent.
Active Listings
On June 1, there were 31,346 active listings on the Arizona Regional MLS system. That is 9.4 percent below May 1 of this year and 23.3 percent below June 1, 2010. Of those 31,346 active listings, 7,737 were marked AWC (active with contingent contract), which means they already have a contract on them. If we exclude these AWC listings, the number of active listings is down to only 23,609, down 28.8 percent compared with last year, and down almost 60 percent from October 2007. As of June 1, there is only a 3.2 months supply of homes, down from the average of 5.9 months supply.
What does all this mean?
The bottom of the market has passed. Prices are now 2 to 3 percent above January and February of this year, which experts have now established as the time the market bottomed out. If you were waiting to get the best housing deal of the recession, you have missed the moment, but some good opportunities still remain.
Because of the tight inventory, buying a home suddenly has become increasingly competitive. I am seeing multiple offers on homes again. New listings are moving quickly, and buyers are making quicker decisions. Moreover, great homes and great deals are becoming harder to find. If you have been anxious to move, now is an opportune time to list your home. Many buyers are just waiting in the wings to pounce, and they watch the Internet on a daily basis to see what comes available. If you have been contemplating purchasing a home to take advantage of low prices, this is a great time, as the law of supply and demand will soon catch up with the current market!
John Karadsheh is a licensed REALTOR® with Coldwell Banker Trails And Paths Premier Properties. He also is an Associate Broker, Accredited Buyers Representative and a Certified Residential Specialist. You can contact John with any of your real estate questions. Call him at (602) 615-0843, or go to his Web site at www.BuyAndSellAZ.com.