Phoenix AZ Homes For Sale: Phoenix AZ Housing Market Update-Buyer's Market or Seller's Market?

Here is the Market Update through the end of December 2011 for the Greater Phoenix Area:

Inventory (All Areas & Types in MLS): Total active listings have dropped by 1376 units over the beginning of last month. As of January 11, we sit at 25,342 Actives for Single Family Homes and Condos. Sales are at 7042 for the last 30 days (as of January 11th), up by 53 units from December 2011. We are currently sitting at a 3.6 months of supply. If you subtract out the AWC Contracts (which are included in Actives in the Cromford Report), we are at an approximate 3.0 months of supply. Traditionally, 3-4 months of supply indicate a balanced market. Now is the time to take listings!

Distressed Market Pie Chart: This chart shows you the percentage of distressed properties that are being listed and sold. Short Sales represent 32% of the Closings for December (compared to 30% in November) and 36% of the active Listings for a 3.9 Months of Supply. Distressed Sales (Short Sales and REOs combined) accounted for 59% of the total sales for December. REO Sales have taken a dramatic drop to 27% of the sales from 30% last month. The listing success rate for Short Sales is 60.8%! Don't avoid these listings! They are closing with greater success rate!

Closings (Maricopa County: New Construction and Re-Sales): There were 7806 closings in December 2011 vs. 6975 closings in November 2011, which equates to a 11.9% increase. There were 6991 closing in December 2010, which is a 11.7% year-over-year increase for 2011. And, for the entire year of 2011, there was a 9% increase in sales over the year of 2010!

Reality Check: The Median Sold Price for Maricopa County for December 2011 was $129,214, which is up .4% from November 2011. In December 2006, the Median Sold Price was $265,000! In December 2000, the Median Sold Price was $138,286. Use this at your listing appointments to help explain what has happened to our market and get realistic list prices!

Luxury: The Luxury Market of $1,000,000+ continues to have the lowest absorption rate of any market segment. There was a 6% absorption rate for the month of November. Only 66 properties in all of the MLS were sold for more than $1,000,000 in December 2011.

NUMBER OF MONTHS OF SUPPLY

East Valley: 2.5
Northwest: 3.6

Paradise Valley: 8.8

Luxury ($1mil+): 16.4

Southwest: 2.7

Peoria/Glendale: 2.6

Camelback Corridor: 3.7

Cave Creek: 4.3

Ahwatukee: 2.9

Scottsdale: 5.7
Apache Junction: 3.3

Fountain Hills: 6.6

Buckeye: 3.1