With one month of summer left, how is the Arizona market holding up?

With one month left of summer, and I hope you have had a chance to take a vacation or have one planned very soon.

Sales production in June dropped to 8,228 which is a reduction of 12.8% from May.  This is fairly common, and is a reaction to our summer temperatures.  Total sales are still ahead of last year but are lagging compared with 2009, 2010, and 2011 figures.

June also saw a 6.1% reduction of new inventory of homes for sale.  9,246 homes were listed for sale.  Total inventory continued its decline to 19,511, which is a loss of 1.1% over May.  In addition, 20.6% of the Active Inventory homes were already under contract, further diminishing the number of homes for sale.  Months Supply of Inventory increased in July to 2.27 months – this is primarily due to the reduction of home sales.

The Phoenix Housing Market continues to race ahead of the National Market in price increases.  The median list price increased by 2.5% to $199,900.  The median sales price rose by 2.9% to $180,000, 27% higher than June 2012.  The average sales price declined to $236,954.  The very slight reduction in price is not indicative of softening prices but instead is reflective of fewer sales on the high end of the market.  Fewer homes for sale will continue to push prices higher.

Several of our investment clients have asked us to market their current rental home.  Home sales, investment or primary residential, is a service we have been providing for the past 35 years.  If you are interested in buying another home or have decided to reduce your inventory, please let me know and we will develop a strategy for you.