Market Summary for April 2010 in Metro Phoenix, AZ

May 16, 2010 at 7:27 am Leave a comment

Based on the Cromford Report, below is a market summary for the beginning of April 2010.

City, Appreciation,Days Inventory

Phoenix 27.2% 119
Buckeye 7.3% 110
Litchfield Park 5.6% 123
Glendale 5.4% 112
Fountain Hills 5.3% 284
Queen Creek 4.6% 124
Avondale 3.5% 82
Mesa 3.3% 141
Surprise 3.3% 128
Apache Junction 2.8% 112
Anthem 2.0% 93
Maricopa 1.7% 118
Goodyear 1.1% 128
Sun Lakes 0.0% 243
Tolleson -0.7% 81
Gilbert -2.0% 152
Arizona City -2.4% 99
Sun City West -2.7% 211
Chandler -3.2% 158
Peoria -3.8% 153
Casa Grande -4.1% 120
Gold Canyon -4.1% 237
Laveen -5.0% 138
Tempe -6.8% 186
Paradise Valley -7.8% 610
Sun City -9.0% 194
Scottsdale -10.1% 288
Cave Creek -13.9% 255

Note that the market in Phoenix has been dominated by very heavy sales volume of distressed properties in the west and south where prices reached alarmingly low levels in the first half of 2009 and then recovered sharply. The east and north areas of Phoenix did not follow this same pattern.

Generally the lower priced areas have shown upward price movement, while the higher priced areas declined. Exceptions to this rule can be seen however, as in Fountain Hills, Laveen and Casa Grande. Note however that the $/SF in Fountain Hills is quite volatile on a monthly basis depending on the mix of homes that sold during the month.

Inventory levels are now particularly low in Avondale, Anthem and Tolleson, but remain high in Paradise Valley, Scottsdale and Fountain Hills although these too are showing downward trends as sales rates for luxury homes have picked up from the very low level of a year ago.

Although the overall volume of foreclosure activity still suggests we are past the very worst, March was a very heavy month for trustee sales, with 5,556 for Maricopa County across all real property types. This is partly because March contained more working days (23) and partly because trustees cut sharply into the pending notices. Pending foreclosures declined by 1,314 bringing us down to 49,102 compared with 51,466 at the end of 2009. The number of new foreclosure notices was 8,045, which is 25% below the number in March 2009. The mix of properties in foreclosure is moving slightly away from low end single family homes, while commercial properties and luxury homes in distress are becoming slightly more numerous. As a result many upper-end communities are seeing an increase in distressed properties while lower end communities are stabilizing, having already seen the worst.

The increased activity by trustees caused REO inventory to grow and we will probably see a corresponding swell in lender owned properties offered for sale on ARMLS over the next 2 months. On the other hand, demand for lender-owned properties remains very high and multiple-bid situations will remain the norm.

Sales pricing for REOs and short sales increased during March by 1.2% and 3.2% respectively, but $/SF for normal sales moved lower by 2%. Overall sales $/SF increased by 1.2% while list pricing for actives fell by 1.3% continuing a long downward trend.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate, Real Estate Deals. Tags: , , , .

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