Phoenix Real Estate Statistics.
2011 rebounded nicely when it comes to number of homes sold. Total home sales topped out at 101,436, which was the second highest total home sales in a decade. Only 2005 was higher with 104,725 sales. You may recall 2005 as being the height of the real estate boom in our valley. Home sales in 2002, 2003, 2004 were 67,950, 80,052, and 98,922 respectively. You can see that 2011 faired quite well considering the struggling economy around the country. Many financial scholars consider Arizona’s housing market to be in recovery. The number of home sales being at this level sure helps.
Other numbers to consider are the average home sale price and days on market. The median home sale price has risen slightly from $124,900 to $129,900 and the current days on market is under 95 days and sits squarely in what many consider a sellers market. Normally, this would cause home prices to begin to rise, right? Consider these factors. Over half of our sales in the valley were either short sales or banked owned. This would have an effect on sales price in several ways. In both cases, banks would want to move their inventory as they are not in the real estate market (so to speak). Their process can be a grindingly slow one at times. Unlike a “typical” sale where a seller can pick and choose the price at any moment.
Consider this. You want to sell your home, but you live in a neighborhood where more than 50% of the home for sale are short sales or bank owned. You want to raise your price, but the last 6 months only show the sales of these other depressed homes. This effects your pricing. Even if your agent does a great job of marketing your home and you get a contract at your higher price, if a lender is involved, your home will still have to appraise. The only way to get out of this situation is to find a buyer willing to pay cash and at a price that is above the last sales. So, what about your home will entice them to do this.
My point here is simply to remind you that there are many factors and they are all connected. Be wary of reports that give one or two statistics. I have not even mentioned issues with buyer qualifying for loans and/or lending issues.
I believe our recovery will continue, but at a snails pace. It is great that homes are selling and 2011 ended at such a high rate. Now we need our economy to stabilize and for home owners to not be forced into foreclosure. It is good to hear that the President is working on changing some lending road blocks this Spring to allow for the refinancing of home loans (see earlier article).
If you register here at our site, you can receive the latest information on our housing market, see individual areas of interest, such as bank owned, short sales, condos, and much more… Or simply keep informed about the valley’s recovery.
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See the complete ARMLS Report Here.
Scottsdale, Phoenix real estate sales and purchases email: scott@scottsdalescott.com
Scott & Sandy Farmer, REALTORS®, GRI
Remember, when it comes to real estate: “It’s A Farmer’s Market”
Realty One Group, LLC, Scottsdale, Arizona>
ScottsdaleScott: Scott Farmer, Scottsdale Real Estate Home Sales
