Bob’s view on today’s housing market

The positive trends in our valley’s single family housing market is continuing.  I reviewed the latest information from Arizona Regional Multiple Listing Service (ARMLS).

Our local Multiple Listing Service reports the following:

  • Home sales jumped dramatically in June, up just over 8% to a total of 9,129.  This increase was the fourth highest month over month gain in the last twelve months.  Strong sales numbers of over 7,000 occurred in eleven months in the last year with June being the highest.  These results also reflect a typical seasonal uptick between May and June.
  • Total inventory of homes for sale fell again in June 1.5%, to 19,857 for the fifth month in a row.  As a result the “Months Supply of Inventory” has also dropped to 2.19 months.  We have not seen this low of an indication of supply since September 2005.
  • The median price of new listings in June fell by .7% to $155,900; the average list price fell 2.7% to $227,900.  The median sales price dropped 2.8% to $141,000. The average sales price also fell by 5.1% ending at $194,300.  In the past year the average sales price has increased 25.5% despite June’s 5.1% decline.  It is important to remember that these figures are for the entire valley and represent all home sales.

I also dug deeper into these posted results.  It appears that homes priced up to $175,000 are in high demand, especially among buyers shopping for investment homes.  As a result, the lower end of the investment market is being flooded with new rental homes, especially smaller homes and those located in the outlying areas.  The neighborhoods that we have been recommending for years – Arrowhead Ranch, Tatum Ranch, WestWing, Stetson Valley – are still renting quickly by very well qualified families.  Buying quality homes located in strong family neighborhoods continues to be the right choice for a solid long term investment.