July 2009 - The greater Phoenix metro area real estate market continues to remain at a 3.5 months supply!
Inventories continue to drop approximately 300 to 500 units a week.
Still 94% of the sales are under $400,000.
The REO inventory has dropped dramatically we are now down to under 5,000 units on the market. The REO Sales has gone from 66% to 57% in one month, due to a lack of inventory.
Months of Supply
5.1 mo = neither sellers or buyers market;
Less than 5.1 mo = sellers market;
More than 5.1 mo = buyers market
• Ahwatukee 3.2
• Apache Junction & Queen Creek 2.6
• Cave Creek & Carefree 9.6
• Phoenix and Central Corridor 7.0
• East Valley 3.1
• Fountain Hills 7.5
• Goodyear Litchfield Avondale 1.8
• Valleywide Single Family 3.0
• Valleywide 3.5
• Luxury Valleywide 31.3
• Northwest 3.4
• Peoria and Glendale 2.4
• Paradise Valley 24.0
• Scottsdale 7.2
The most active ’submarket’ is Single Family homes, not in short sale and priced below $350,000. This submarket only has a 1.46 months supply! This explains why it has become so difficult for buyers to purchase property. It also makes sense that due to the lack of inventory and low market supply, properties in this subcategory are increasing in value as buyers compete to purchase. But, today these properties are still a great deal as compared to just three years ago. The average price per square foot for this price range in June 2006 was $156.47. Today buyers are getting a discount of 56% compared with three years ago. Sellers in this submarket - “make sure you don’t sell too cheaply - the trend is working in your favor:” Buyers - make reasonable offers, so you don’t get underbid!
So what about the rest of the market?
Between $350,000 and $500,000 - Market Conditions are approximately balanced between buyers and sellers.
At $750,000 and above there is a 26+ month supply! However, the average prices have only fallen 15.6% in the last three years. This is a very small drop compared with the 56% in the affordable sector. No sign of a bottom in this market yet.This submarket will probably remain slow for a while.
Questions? Please feel free to contact us at any time for detailed reports about a specific city or zip code within the Greater Phoenix Metro Area.