ARMLS Data via The Cromford Report

Distress in the real estate market weighs heavily on its ability to stabilize and is preventing it from moving fore-ward into neutrality. 

This is a look at the October 2009 Greater Phoenix real estate market,  this is a very wide view encompassing all residential properties in the Metro valley.  As always we'll look at specifics in the coming days and weeks.  And all recent reports are available on a Housing Market Reports page.

Despite the all out deluge of buyers for lender owned properties, they still make up 12.6% of the market and the pre-foreclosure market keeps increasing.  Last, 37.1% of active homes were in this category: short sale or pre-foreclosure.  That is up over the last few months and more then double over 2008.   Sales, too reflect this.  46.7% of solds were lender owned and 19.6% of solds were short sales. 

Sales:

In October 8,032 properties sold.  This is quite awesome as the number is up over last month and up over the 5,339 in 2008.  This is usually the time sales drop, a seasonal drop, but this year they are up. 

I suspect it's mainly due to the many investors out there picking out good properties and the many first time home buyers capitalizing on the low prices and the $8,000 free money.  So far this year 84,218 properties changed hands compared to YTD 56,069 in 2008, that's a whopping 56% improvement.

Inventory:

All this activity has brought inventory down from 54,748 last year to a more manageable 38,733 this year bringing supply to a balanced 5 months.  Now, this is up a little bit over September and the summer season, but have no fear as it's normal for this time of year.

Sales Numbers:

There is still a lot of weakness.  Just take a look at our second paragraph above.  The market is driven by distress: foreclosures and pre-foreclosures.  There is strength in many places, like homes withing the FHA limits, in popular desirable neighborhoods and for unique trophy properties: there is weakness in the low end destroyed homes, in the plain track homes of which there are many in the mid price range and in the jumbo loan area, i.e. luxury homes market where there is enough supply for years of demand.

A Look Ahead:

We'll soon know if the money give out will end November 31st or if it's extended: we should know sooner then that. 
This may affect the market.

Interest rates remain low, demand is high and despite the inventory that is little good stuff to choose from, and by good, I mean move-in ready.