Our good friend Sarah Moran from Equity Title just sent the real estate market news and update for April 2011.
I like Sarah's approach to performing real estate market analysis and home price projections. Like me, she is based in supply and demand therory and she includes social connectors when possible. This report is a broad one with real estate market information Phoenix, Scottsdale, Mesa, Gelendale, Tempe and most other cities in the Greater Phoenix region. Thus, it is supply and demand based as social consideration such as job growth is too regional to be use when painting with a broad brush.
That said, here is the real estate market news for April 2011 provided by Equity Title and Sarah Moran:
Here is the Market Update through the end of March 2011. Please note that the Valley Wide graph represents all of the MLS. The table below that graph just represents recordings for new and re-sales for Maricopa County.
Good News: Total active listings have dropped by another 2883 units over the beginning of last month. As of yesterday, we sit at 36,883 Actives, which is the lowest amount in April for the last two years! Good news for sales, too: Sales are up to 9135 for the last 30 days, as of yesterday. We are currently sitting at a 3.8 months of supply.Traditionally, 3.8 months of supply is considered a Balanced Market! Wow!
Distressed Market Pie Chart: This chart shows you the percentage of distressed properties that are being listed and sold. Short Sales currently represent 20% of the Closings and 38% of the active Listings for a 8.3 Months of Supply ~ This has dropped from the 9.8 months of supply we had in February. Distressed Sales (Short Sales and REOs combined) accounted for 66% of the total sales for March.
Closings are Increasing: There were 9118 closings in March 2011 vs. 8657 closings in March 2010 ~ which equates to a 5% increase over last year (even without the Tax Credit)!
Reality Check: The Median Sold Price for Maricopa County for March 2011 was $120,100. In March 2006, the Median Sold Price was $260,000! In March 2000, the Median Sold Price was $132,000. Use this at your listing appointments to help explain what has happened to our market and get realistic list prices!
We currently sit at a 3.8 months of supply in the valley. This may seem balanced but the high-end market continues to be stagnant. In the entire MLS, only 88 properties sold for $1+ million for the month of March. An astounding 94% of the closed MLS Sales for March were less than $400,000!
Please click on the link below to take you to the Graphs. You can save/print/email them from there! Use these with all of your clients, SOI and Open Houses! Everyone wants to know what is happening in Real Estate - Be the authority!! Remember that you can always go to www.eta-az.com and click on Market Update for this info as well!
MONTHS OF SUPPLY
East Valley: 3.7
Paradise Valley: 15.8
Luxury ($1mil+): 15.8 (WOW! This has dropped drastically!)
Camelback Corridor: 5.0
Cave Creek: 6.4
Apache Junction: 2.6
Fountain Hills: 4.4
Desert Ridge & Tatum Corridor: 3.3