06-01-2016
Metro Phoenix housing market has best month in a decade April just might have been the best month for metro Phoenix's housing market in a decade. Foreclosures fell to the lowest level since 2006. Homebuilding continued to rebound. Phoenix kept its spot as one of most affordable big metro areas for ...
09-26-2014
More Phoenix homeowners have equity now Fewer metro Phoenix homeowners are underwater now, according to CoreLogic. Approximately 19.5% of the Valley's homeowners owed more than their house is worth as of June 30, down from 21% at the end of this year's first quarter. At the worst of the housing cra ...
09-05-2014
Phoenix-area home sales, prices cool in July In Metro Phoenix, both sales and prices dipped in July. Home sales fell 4.5% and the median home sales price inched down to $210,000 compared with June, according to the W.P. Carey School of Business at Arizona State University. The housing market's mode ...
08-25-2014
Ariz. homebuilders offering deals New-home prices across metro Phoenix soared too high and too fast in 2012 and 2013 for many buyers to handle, leading to a slump in sales. Home prices have dropped slightly this summer, and builders are trying to lure buyers by offering incentives that include lowe ...
Click Here for All Articles
From Date       To Date

News Article From: 10-09-2008



 

Resale Sales Analysis

 

 

The September ARMLS1 Reports reported sales of 5,720, which is a decrease of 246 from July.  On a seasonally adjusted basis sales were up 1,370 from July 2007.
<!--[if !supportLineBreakNewLine]-->
<!--[endif]-->

 

Sales Patterns

 

There are several different factors that interact to make up the current sales numbers.  One of the most significant is the seasonal pattern clearly seen in the graph below.  The winter months show the lowest sales volume, while the summer months are the highest in sales.  This basic pattern is true for each year displayed.

 

<!--[if !vml]--><!--[endif]-->

 

A second factor is an abnormal market condition.  The investor/speculator craze in 2004 and 2005 was just such a condition.  Therefore comparing sales numbers to those time periods shows a significant decline, which is not an accurate indication of the health of the Phoenix area real estate market.  Sales similar to the 2002 and 2003 sales volume represent a normal sales level for the Phoenix metro area market with current interest rates and job growth.

 

 

Commentary

 

 

The sales level for the past nine months is far below the historical norm.  Lack of consumer confidence is likely the major factor.   Counter balancing this lack of consumer confidence is a growing pent up demand for the purchase of houses to support the occupant's lifestyle.  We are not making a prediction as to when the pent up demand will overcome the resistance of the lack of consumer confidence, but when it does happen there will likely be a surge in buying.

 

 

An important phenomenon to understand is the very significant jump in sales between 2003 and 2004.  For most of 2004 and 2005 sales numbers were much higher than would normally have been expected because of the excess home purchases for non-owner occupied purposes.  Investor/speculator buying was a significant contributor to this increase, and we are now seeing many of these properties re-listed on the market.  

 

 

Copyright® 2008 - This information is compiled and written by Ultimate Information Systems, Inc. Use of this article, in part or in its entirety, is expressly prohibited without written permission.  Click here to request limited rights to reuse this information.

 

 

 

 

 

1 (ARMLS) Arizona Regional Multiple Listing Service encompasses most of Maricopa and Pinal Counties .

Invest With Leonid © 2007
A CompuGor Website