Phoenix Real Estate Market Update - July 2015 - The Seller's Market Continues...

PHOENIX AND ARMLS MARKET UPDATE
JULY 2015

Active Listings: 19,545 down 10% over the last 30 days and a 22% decline year-over-year

·         Equity: 18,700 (96%)

·         Short Sales: 441 (2.3%)

·         REO: 380 (2%)

·         HUD: 24

Closed sales are on the rise and new listings remain low. Inventory supply is currently only 2.25 months which continues to signal a seller’s market under $500,000.  Many new listings priced at or under FHA loan limits ($280,000) are flying off the market with multiple offers.  The entire MLS has only a 3.5 months supply

Price Range	Active	Sold in April 2015	Months Supply
$0-150,000	1652	1529	1.08
$150,000 - $300,000	6262	4177	1.5
$300,000 - $500,000	4982	1630	3.0
$500,000 - $600,000	1123	247	4.5
$600,000 - $800,000	1186	186	6.4
$800,000 - $1,000,000	675	82	8.2
$1,000,000+	1495	133	11.24

Active listings are in short supply and are generally higher priced than recent sold comps and they are still going under contract quickly and then closing at higher prices than the recent solds.

Sales are up 20% year-over-year showing strong demand for purchasing even while inventory levels are down 22% year-over-year

We may see a spike in pricing soon as long as the demand remains high and the inventory levels continue to diminish.

Distressed properties continue to decline and are now just 4% of the market as a whole. They account for only 6.5% of the closed market.  We estimate that 20% of homes in Metro Phoenix are still underwater which is another factor contributing to our low inventory.

UCB/Pending: 10,757

·         Equity: 9,173 (85%)

·         Short Sales: 1,200 (11%)

·         REO: 306 (3%)

·         HUD: 78

June Closed Sales: 8,666 an increase of 10% year over year.

·         Equity: 8,101 (93.5%)

·         Short Sales: 255 (2.7%)

·         REO: 306 (3%)

·         HUD: 47

Cash buyers in June 2015 were 26.4% of all closed sales vs. 31.5% in June 2014

Other Things to Note:

·         Cash is King!  25% of all sales are cash!  Investors, flippers and Canadians are still active in the market.

·         The Phoenix area is still “On Sale” – our average price per square foot is inline with the historic trend of appreciation but we are 40% below the peak.

·         Seller Concessions were given on 30% of sales under $300,000
Seller Concessions were given on 16% of sales between $300,000 - $500,000

Seller Concessions were given on 4% of sales over $500,000

·         Prices are on the rise!  Since the beginning of 2015, the average closing price for a single family home has risen $16,595 from $255,289 in January 2015 to $271,884 in June.

·         Millennial buyers are coming into the market. They realize that they only need a salary of $28,547 to afford a home. The average 18-34 year old makes $35,790.  This report does not factor in debt, savings or the cost of living.