May 13, 2008

Greater Phoenix Real Estate Homes Sales Update

April 2008 Phoenix Home Sales News

The buzz is out. ASU Polytechnic has put our their April numbers for Greater Phoenix real estate sales and all the websites are shaking with activity, some just putting out numbers while other are commenting about those putting out number and then putting them out themselves, then others are...

So what's the break down.

In April 5,585 homes sold compared to 4,855 last year. That's quite an increase. From what the report shows the pick up in sales is for lower priced homes. There is a lot of short sale, foreclosed and distressed properties being sold for very low prices, especially on the outskirts of Phoenix metro. Its the higher end homes that are stagnating now with high inventory and lower sales. This is probably the reason that year on year median home price for the Phoenix valley declined to $210,000 from last years $265,000.

Affordability is up, loans are available and buyers as well as inventory now see the opportunity and can act on it. Getting rid of the starter home stock should help with sales up the food chain but this may not happen because many of the homes sold are vacant anyways so there is no one to move up.

The increased activity is good but, is it a sign of a return? Probably not. The market is simply stabilizing at the bottom which may last a while and fluctuate both down and up.

A Coutrywide economist seems to think we are in for additional turmoil after a bit of peace this year.

"Home prices will stabilize for the remainder of this year with many forecasting a permanent bottom. The next leg down for this economic and credit cycle will begin next year with another government stimulus package to follow. Patience will be rewarded to those that don't chase the first bounce off a temporary bottom. Those with debt should liquidate into strength and build savings for the opportunities that lie ahead in 2010 and beyond."

Is this relevant for Greater Phoenix? Probably, but each neighborhood and segment moves differently.

I'll still put up the graphs and charts, because its fun, despite the limitations of the numbers. But, read the comments for more depth.