September’s Market Shows Positive News for Phoenix

Every month I send a letter to our clients informing them of the real-estate market in Arizona. Below is my most recent report they received:

My market report for September holds very good news. The Phoenix real estate market is continuing to improve.

Our local Multiple Listing Service reports the following:

    • Home sales in September dropped 14.5% from August to 6,478 units.  This decline in home sales from August to September is consistent with ten out of the last eleven years.  It also has to do with a relatively small number of homes for sale.
    • New listings also declined by 7.3% in September.  8,901 homes were listed for sale in September in the Phoenix metropolitan area.  Total inventory of homes for sale rose again in September by 9.2%.  At the end of September there were 22,862 units for sale.  As a result we currently have 3.53 Months Supply of Inventory.
    • The median price of new listings in September increased by 4.7% to $167,400.  This amount is 27.8% higher than twelve months ago.  The average list price in August increased 16.1% to $257,600 – which is 22.2% greater than last September.  The median sales increased 2.7% $150,000.  The average sales price in September increased 2.3% ending at $198,800.
    • The percentage of homes in escrow with a sales price below $100,000 is continuing to drop, signaling a decrease in the affordability of homes in metropolitan Phoenix.  The number of homes in escrow between $100,000 and $300,000 is increasing as a result of fewer homes available in the lower range.  The Phoenix home market is still very positive, home prices are continuing to rise.
    • Another key indicator, foreclosures pending dropped another 10.9% from last month.  In the past twelve months, foreclosures pending have declined 37.17% and 71.6% since November 2009 when the foreclosure peaked.