Focus On: Peoria, AZ Real Estate Market

July 06, 2009

A seller's market in Peoria? The numbers say it, but it's not.

Inventory is down and sales are up: prices decline and distress is high, sounds like a typical valley real estate market.
Over the last quarter sales each month have been on the rise in Peoria to tune of 320 homes in June and the Pending sales, a very important indicator, also on the rise, indicating strong sales in the coming month.

All this activity has decreased supply to 3.1 months. Technically that means it's a seller's market, but it's certainly not a "normal" seller's market.

(graph is from The Cromford Report)

It's a bank owned seller's market. Nearly 44% of the active homes are bank owned, a whopping 43% are short sales and only 13% are normal. I don't really know how the normal sellers can compete against such a huge distressed market.

Nearly 80% of all properties sold in Peoria were either lender owned (61%) or short sales (18.2%).
What's interesting is that the sales to list price is lower here then in other areas of the valley like Surprise and the listing success rate is much lower at 70%. That means that 30% of the homes either expire or cancel.

I'm sure many of these are short sales that did not sell and go into foreclosure.
Peoria is more expensive then both Glendale and Surprise and both those cities have a nice supply of homes competing for buyers, so that may be the reason for the weaker numbers then the neighbors.

Newest Peoria Homes For Sale