In our ongoing effort to post consistent and timely Phoenix housing market updates, here below is a Concise Market Snapshot from The Cromford Report, and my own short commentary afterward. For a frame of reference on this month’s numbers, you may want to take a quick look at last month’s post, “Phoenix Housing Market Update – February 20, 2013.”
Average Home Sales Price
As you might expect with the number of homes under contract rising again this month, both the average and median home sale price surged again, too. This increase in activity is also causing home buyers to have to pay closer to a home’s list price – over 97% now – in order to seal the deal. Our Buyer’s Agents here at The Hill Group have helped several clients this year to negotiate contracts 4% – 6% below list price, but those opportunities are becoming more of an exception than the rule. If this pace keeps up, we’re going to see a continued seller’s market across the East Valley throughout the spring and summer months of 2013.
Number of Houses for Sale
Obviously, the number of houses for sale in the Phoenix area is still declining, but there are a variety of forces that can affect our real estate inventory. Let’s take a look at how two of them are impacting our market right now.
First, there are lender owned listings, which are fueled by the number of non-current loans that end up going into foreclosure. Despite us once having one of the highest percentages of non-current loans several years ago, Arizona now has one of the ten lowest percentages of non-current loans in the nation. Without that steady stream of foreclosed homes coming onto the market, the number of houses for sale in the Phoenix area has fallen by 50% over the last two years!
Second, we’re starting to see new infill developments popping up in the city’s core. On AZCentral.com, the article “Infill development in Phoenix a positive sign for housing” pointed out what makes infill developments so unique: the infrastructure they need is already in place, which makes them easier to build and turn over to the public. Although they are a welcome addition to the Valley, so far, infill subdivisions like Verona Vineyard and Portland II have not done enough yet to dramatically affect our inventory.
Now that you’ve heard from me, I’d love to hear what you saw in this month’s numbers. Do you have anything to add to the conversation about infill developments? Tell me in a comment below!
**If you would like a chart, similar to the one above, prepared for your own city or zip code within the Greater Phoenix Area, just post a comment below, send us a message on our Contact Us page, or give us a call the old fashioned way! We would love to hear from you.**
Source: The Cromford Report