Phoenix Showing Solid Sales Activity In August
Median Home Price Fell -5.1% in August
The Phoenix housing market showed solid sales activity for August. The overall per month sales trend bucks that seen in the same 2005-7 period when sales generally moved downward. Based on market projections, 2008 is on track to surpass 2007 for total home sales.
The median home price, as measured at the end of each month, also continued to fall. This decline is likely due to continued heightened activity for foreclosure-related properties and other strong values in the lower price band of the housing market and overall price declines.
The elimination of down payment assistance on October 1 may be temporarily accelerating action by home buyers to buy properties before the assistance goes away. This urgency is exacerbated by numerous lenders that are implementing program terminations prior to October 1. The likely impact after October is unclear but could be significant given the prevalence of FHA loans in the Phoenix market.
Guidance is that this continues to be a great time to for home buyers to purchase real estate here in the Valley.
Highlights
- Sales activity in the greater Phoenix home market showing solid performance and bucking trends of 2005-7 downturn period.
- Median home value dropped 5.1% from month before, likely driven by foreclosure-related sales at lower band of market and broader price declines..
- Elimination of Down Payment Assistance for FHA borrowers could impact the market adversely.
- Buyer opportunities abound as foreclosures and aggressively priced homes present strong value propositions.
| Single family | August 2008 | Change | August 2007 | Change 2008 vs. July 2007 |
| Available Inventory | 52,302 | -1.0% | 56,100 | -7.6% |
| Under Contract Pending AWC* | 6,813 943 | -.5% | 530 | +58.3% |
| Sold | 5,834 | -1.9% | 4,302 | +35.6% |
| Avg. Days on Market | 117 days | -7.8% | 113 | +3.5% |
| Median Sold Price | $185,000 | -5.1% | $250,000 | -26.0% |
