Summer is here and home sales are increasing

Summer is here in Phoenix, we have just started enjoying triple digits high temperatures.  The good news is that mornings are still perfect for sitting outside and enjoying breakfast and reading the paper.  In May we hit an interesting milestone – for three days we had the “No Vacancy” sign flashing.  Every home we manage for rent was rented.  Since then we have soared to one vacant home.

Homes sales in April increased over March to 8,755, an increase of 7.4%.  This is a new trend, in both 2011 and 2012 sales dropped from March to April.  This is the third straight month in a row sales have increased.  Sales in April also were up 3.8% over April 2012.

New listings of properties rose in April to 9,870, an increase of 1.8%.  New inventory also increased compared to April 2012 by 7.6%.  Total inventory declined for the third straight month in a row to 20,083, a loss of 3.1% over March.  In addition, 22% of the Active Inventory were homes already under contract, Seller accepting back-up offers – further diminishing the number of homes for sale.  This is a very low number of homes for sale; a normal market is between 25,000 and 30,000 properties for sale.  Months Supply of Inventory also declined for the third straight month to 2.29 – anything less than four months is considered a seller’s market.

With this lower number of homes for sale, the natural consequence is higher homes prices.  The median list price increased by 2.7% to $195,000 while the average list price rose by .02% to $283,500.  The median sales price rose by 2.7% to $172,000 and the average sales price increased by 1.9% to $227,900.  The average sales price has increased by 50.53% since home prices bottomed out in August 2011 or 2.53% per month increase or simply stated, $76,484 has been added to the average price in the past 20 months.

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