Phoenix East Valley Becomes a Seller's Market

 

Comparison of August 2011 to August 2012 LIST Data and July 2011 to July 2012 SOLD Data for Phoenix,  Scottsdale, Chandler, Gilbert and Mesa homes for sale show sales prices are increasing as sales volume is declining. But that is not the whole story…

Phoenix real estate market has moved from a strong buyer’s market where there is a lot of inventory and homes are priced below market value to attract a buyer, to a seller’s market where inventory is very limited, buyer demand is strong and sellers, including banks, are pricing homes at or above market value.

Strong Buyer competition is pushing the average SOLD prices of homes for sale in Gilbert and Mesa AZ HIGHER THAN average LIST prices.  The average SOLD price of homes for sale in Chandler and Phoenix AZ are almost as high as their average LIST price.

Further analysis shows the number of REO/HUD homes for sale declined dramatically while the number of Short Sale Transactions and Non-Distressed, Traditional Sale are increasing.

Additionally, Non-Distressed, Traditional home sale prices have not changed in a year and remain higher than the increasing REO/HUD home and Short Sale home sale prices.

We have more demand for homes than we have homes for sale across much of the home pricing spectrum. We also have enough cash buyers to encourage some sellers to price their homes above appraised value, hoping to sell to an all cash buyer or a buyer who is willing to increase their down payment to pay cash for the difference between the sale price and the appraised value.

Buyers with limited cash to pay their down payment and buyer closing costs are unable to make offers above appraised value and this limits their chance of buying a home. As a result we are seeing a drop in home sales.

We have enough demand to sell more Phoenix homes, but market prices are running ahead of appraised values and this constrains the typical buyer with no equity from their previous home sale to be able to move up. As cash sales close, we’ll have comparable sales to support higher offers from buyers financing the purchase of their home.

 

Quick Summary of Metro Phoenix East Valley AVERAGE AUGUST  LIST PRICE

 

City

August 2011

August 2012

2012/2011

2011 Days On

2012 Days On

 

List Price

List Price

 

Market

Market

Chandler

$189,450

$224,400

+118%

128

101

Gilbert

$184,900

$229,250

+124%

120

97

Mesa

$132,765

$150,000

+113%

123

94

Phoenix

$129,900

$175,000

+135%

130

108

Scottsdale

$599,000

$625,000

+104%

198

175

 

Quick Summary of Metro Phoenix East Valley AVERAGE JULY SOLD PRICE FOR ALL SALES

 

City

July 2011

July 2012

2012/2011

2011 Units

2012 Units 

 

Sold Price

Sold Price

Sold Price

Sold

Sold

Chandler

$196,887

$221,828

+112%

422

358

Gilbert

$187,861

$236,368

+125%

435

418

Mesa

$136,415

$185,955

+136%

607

498

Phoenix

$128,055

$171,439

+133%

1819

1499

Scottsdale

$469,424

$508,900

+108%

419

413

 

Quick Summary of Metro Phoenix East Valley AVERAGE JULY SOLD PRICE – REO/HUD Transactions

 

City

July 2011

July 2012

2012/2011

2011 Units

2012 Units 

 

Sold Price

Sold Price

Sold Price

Sold

Sold

Chandler

$141,004

$164,697

+116%

152

34

Gilbert

$157,298

$214,384

+136%

138

44

Mesa

$109,065

$158,800

+145%

296

76

Phoenix

$ 85,119

$116,615

+137%

916

251

Scottsdale

$335,720

$419,933

+125%

94

30

 

Quick Summary of Metro Phoenix East Valley AVERAGE JULY SOLD PRICE – Short Sales Transactions

 

City

July 2011

July 2012

2012/2011

2011 Units

2012 Units 

 

Sold Price

Sold Price

Sold Price

Sold

Sold

Chandler

$182,893

$188,626

+103%

95

118

Gilbert

$177,573

$202,913

+114%

119

146

Mesa

$132,489

$152,714

+115%

126

153

Phoenix

$121,468

$122,480

+100%

385

476

Scottsdale

$440,488

$471,324

+107%

81

83

 

Quick Summary of Metro Phoenix East Valley AVERAGE JULY SOLD PRICE – Non-Distressed Transactions

 

City

July 2011

July 2012

2012/2011

2011 Units

2012 Units 

 

Sold Price

Sold Price

Sold Price

Sold

Sold

Chandler

$249,126

$248,948

+100%

183

209

Gilbert

$217,790

$260,174

+119%

186

234

Mesa

$178,283

$210,265

+118%

202

274

Phoenix

$207,377

$217,383

+104%

532

792

Scottsdale

$529,760

$532,577

+100%

258

313

 

Summary of Metro Phoenix East Valley – Big Drop in JULY REO/HUD Homes resulted in Fewer Sales

  

           

           Non-Distressed Sales #  

    Short Sales #           

REO/HUD Sales #     

 City

July 2011

July 2012

July 2011

July 2012

July 2011

July 2012

Chandler

183

209

95

118

152

34

Gilbert

186

234

119

146

138

44

Mesa

202

274

126

153

296

76

Phoenix

532

792

385

476

916

251

Scottsdale

258

313

81

83

94

30

 

Finding an affordable home for sale in Chandler, Gilbert or Mesa in a good location with good schools and the features and terms you want is a challenge. With 22 years of residential sales experience, I have the experience, knowledge and sales skills to get you into your ideal home. Call or email me today to maximize your opportunity for success in finding your new home.

Sam Elam, Associate Broker, ABR, CRS, GRI, e-PRO

Prudential Arizona Properties

Serving Chandler, Gilbert and Mesa Real Estate markets

(480) 213-1799 CELL

Sam@SamElam.com

 

MLS Search Homes for Sale in Chandler, Gilbert and Mesa, AZ

http://www.SamElam.com