Phoenix Housing Market Trends – May 2012

Those of you who are wondering what the facts are on the valley’s real estate market values, this will be a quick primer.

Despite national news or even the local news stories (shadow inventory, prices dropping, foreclosure wave coming, etc.) the fact of the matter is prices have been marching upwards at a record pace the last 3 months. The price per square foot since February 16th has jumped from $85.62 to $98.81. In three short months that is an appreciation of 15.4%. On an annualized basis that would equate to 61.6%. Yikes! This jump can be attributed to the scarcity of inventory – which had been dropping dramatically since the beginning of the year.

Do we think the market will continue appreciating at that clip? No. Inventory appears to be stabilizing – and price appreciation seem poised to do the same in June. But appreciation seems to be the theme for this year – so although we don’t expect the rate to hit a dramatic 61% we do expect it to continue its upward climb.
The Arizona market is as HOT as the summer right now! Here is a snap shot of what has been happening recently. The most sales were purchased with CASH (3967) and the largest number of homes ( 1760) were on the market for only 1-10 DAYS before they SOLD! ( ARMLS data ending April 2012). Yes that is correct…DAYS!

Financing used to purchase homes:

Cash- 3,967
Conventional- 2,544
FHA- 1,441
Other- 18
Owner- 56
VA- 264

DAYS ON MARKET vs. SOLD

0 days- 166
1 to 10 days- 1,760
11 to 20 days- 971
21 to 30 days- 633
31 to 60 days-1,349
61 to 90 days- 846
91 to 120 days- 603
121 to 180 days-907
181 to 360 days- 785

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