The Phoenix real estate market is continuing to improve!

The Phoenix real estate market is continuing to improve.

Our local Multiple Listing Service reports the following:

  • Home sales in August rose 6% from last month to 7,575 units.  This amount is still below the twelve month average of 7,833 sales – probably because inventory is still very low.
  • New listings increased by 735 homes, an 8.3% increase over July.  9,597 homes were listed for sale in the Phoenix metropolitan area.  Total inventory of homes for sale rose again in August by 550 homes or 2.7%.  At the end of August there were 20,934 units for sale – 11.67% less than the twelve month average of homes for sale.  As a result we currently have 2.76 Months Supply of Inventory.
  • The median price of new listings in August stayed the same at $159,900; the average list price in August declined 3.6% to $221,900.  The median sales price also stayed the same at $146,000. The average sales price in August declined 1.2% ending at $194,000.
  • The “Price Per Square Foot” is continuing to rise in unit sales.  In August, price per square foot increased on average $1-2 per square foot over July.  This is a crucial number because it is a true indication of appreciation.  This represents an increase of 1.7% growth in one month at the $150K to $200K price point.

In the last twelve months we have witnessed a substantial change in the Phoenix market place.

Home values have shot up an average of 28% since August 2011. This price adjustment was a necessary step towards correcting a market that was as far from equilibrium on the low end as it was in 2006 on the high end.  Values appear to have generally returned to the 2003/2004 levels.

The most recent trends are indicating that we are still a “hot” market.  With the run up in home prices, naturally fewer homes are now being foreclosed (foreclosures are down 68% in the past three years) and the number of short sales is declining.  As a real estate investor with properties in Metro Phoenix, this is very good news for you.