Phoenix Housing Market Looking Good with Falls Cooler Temperatures

I read an article this morning talking about how the rest of the country is excited that fall weather is around the corner – the author could tell because Starbucks was preparing to launch their “Pumpkin Spice Latte”.  The same article also said that the excitement of fall weather is short lived; a long, cold winter will follow.  For those of us in the Phoenix area, we still have another six weeks of warmer weather, at least during the day, our evenings will start to cool off.  By October we will be ready to enjoy the beautiful mild weather for at least the next seven to eight months.

I noticed again this year that homes that came vacant in July took longer to rent.  Obviously the heat plays into that result.  Most families prefer to move in cooler months. Investment Homes that are vacant in the later summer months typically take longer to rent than normal.  With the summer coming to an end, I look forward to a stronger rental market.

With fewer homes on the market to buy, it has buyers scrambling to find great properties.  As a result, Phoenix sales production in July dropped .1% to 8,216 – essentially unchanged from the month earlier.  Sales this past July were 14.9% higher that they were in July 2012.

July also saw a reduction of new inventory of homes for sale.  9,148 homes were listed for sale, a reduction of 1.1% – also essentially unchanged.  Total inventory rose by 2.8% for a total of 20,049 properties for sale.  Only 17% of the Active Inventory homes were already under contract, further reducing the available supply of homes for sale.  Months Supply of Inventory increased again in July to 2.44 months.

The Phoenix Housing Market is continuing to correct itself from the years of price reduction.  The median list price increased in July by 25% over July 2012.  The median sales price rose to $185,000, 27.1% higher than July 2012.  The average sales price advanced to $238,800.  Fewer homes for sale will continue to push prices higher.

All of these numbers point towards one direction, owning residential real estate in the Phoenix area was an excellent decision.  This market has obviously made my job more challenging, it is harder to find wonderful investment properties, but they are still out there.  Please let me know if you would like me to help you add to your portfolio.

Now is a great time to own real estate in Phoenix!”