Phoenix Real Estate Market Conditions

Phoenix Real Estate Market is considered Balanced with a 6 month supply of unsold Phoenix homes and foreclosed Phoenix homes on the market in the MLS based upon January residential resale rate of 5,806 homes per month and an current inventory of 34,936 properties for sale (Active Only). New home and Traditional home listings must still compete with short sale and bank owned properties and must be "priced to sell" - not to "test the market", if we are to put this market correction behind us.


Phoenix MLS Residential Listings - Inventory Is UP!
As of February 3, 2010 the number of properties for sale in the Phoenix real estate market area have decreased to 34,936 active MLS listings - down 23% from January 2009. 


Phoenix MLS Residential Sales - DECREASED by 1849 in January 2010!
Arizona Regional MLS (ARMLS) data shows there were 5,806 Phoenix residential sales during January 2010 -1851 more sales than in December 2009, BUT 1130 more sales than January 2009 - up 24 % over a year ago! This dip in December to January sales is no different than the sales dip in previous years.

Recent monthly sales counts:
7,657  December 2009
7,494  November 2009
8,119  October 2009
7,797  September 2009
7,917  August 2009
9,002  July 2009
9,235  June 2009
9,284  May 2009
8,564  April 2009
7,640  March 2009
5,475  February 2009
4,742  January 2009
5,514  December 2008
4,412  November 2008
5,389  October 2008
6,166  September 2008
5,641  August 2008
5,906  July 2008
5,693  June 2008
5,598  May 2008
4,808  April 2008
4,257  March 2008 
3,415  February 2008
2,869  January 2008
3,420  December 2007 
3,318  November 2007
3,457  October 2007
3,435  September 2007
4,358  August 2007
4,730  July 2007
5,438  June 2007
5,795  May 2007 
5,535  April 2007


Phoenix MLS Median Price - 53% Decline from our Peak in June 2006
There have been substantial New and Resale home price reductions. Our median home price for resales homes have declined 53% from our all time high of $264,800 in June 2006 to $123,500 in January 2010. The lower median price reflects the low end of the real estate market dominating sales with very little high end sales activity.

New home Phoenix prices are higher than resale homes because: 1.) Cities increased impact fees charged developers to cover the cost of expanding infrastructure (sewer, water, schools, libraries, roads, parks, etc.) and services to meet the needs of all of residents in the new communities, 2.) Land costs were higher when builders bought the land to build on now and 3.) Building materials and Labor costs are always increasing.

If you know of any stock investors who are trying to buy at the "bottom", you'll appreciate what I am about to say. Don't try to wait until the home prices and mortgage rates are at their lowest. If you do, you are going to miss out on some great opportunities. No one can time the market that well and by the time you realize what you missed you are forced to wait a good long time in hopes of another great buying opportunity to come along again. In historic terms interest rates are low. If you look at home prices in the West, across the United States and around the world, you will appreciate what a terrific bargain Arizona prices are already. 

So in the meantime, enjoy the home buying opportunity you have. Be one of the savvy buyers who are going to enjoy a buyer's market with lots of inventory of Phoenix homes to choose from and low mortgage interest rates to buy the perfect home you have always wanted. Find what you want and have me negotiate a great sales price while seller's are still willing to discount. But don't be complacent. This won't last long! Don't be one of the "Woulda - Coulda - Shoulda's"!


Arizona Department of Real Estate has issued an Advisory warning to new home buyers of builders in financial trouble.
It is customary for builders to deposit a buyer's earnest money deposit into a builder's account, instead of into an escrow account held by a disinterested third party. In the event a builder files for bankruptcy protection, buyer's earnest money deposit may be entangled in the bankruptcy proceedings with the return of the full amount in a timely manner in question. The Arizona Real Estate Commissioner offers a buyer advisory when your builder is in financial trouble.