Ahwatukee Real Estate Market Continues to Heat Up
Ahwatukee real estate performance, as measured by the number of Ahwatukee homes that are currently under contract for sale, continues to heat up as buyers take advantage of low home prices, low interest rates, and the first time homebuyer tax credit. Ahwatukee is experiencing clear improvement in its real estate market as measured by key indicators.
Ahwatukee Home Buyer Demand Continues to Strengthen
Ahwatukee, a “village” of Phoenix, is located south of central Phoenix and west of Tempe and is a master planned community with approximately 88,000 residents. Buyer demand has been robust since the beginning of the year and is showing continued improvement even since April:
- 35.7% of Ahwatukee homes are now under contract versus 29.7% in April. This rate is nearly double the rate seen a year ago.
Looked at another way, for every 10 Ahwatukee homes put up for sale on the market, there are now 3.6 buyers vs. 2.7 buyers a month ago, and 1.8 buyers a year ago.
Inventory of Ahwatukee Homes is Declining
Ahwatukee home inventory is also experiencing improvement as the number of available properties has declined to 551 homes versus 608 homes a few weeks ago, a 9.3% decrease. Clearly, buyer demand is driving the improvement as opposed to cancellations and expirations of existing listings.
Ahwatukee Home Sales Beginning to Reflect Improvement
Sales trends for Ahwatukee real estate are beginning to show the effects of pitched demand for homes. Though sales of Ahwatukee homes were relatively flat in the first quarter of 2009 with 238 homes sold as compared to 252 homes the year before, 2009 second quarter estimates show Ahwatukee on track to sell nearly 300 homes, a 20% improvement.
More Ahwatukee Foreclosures Likely on the Way
However, foreclosures and short sales do remain an area of concern despite improvement in other Ahwatukee real estate market areas. Expectations are for more foreclosures to hit the Ahwatukee area beginning in June and July though estimates are difficult to ascertain. This is due to the termination of the foreclosure moratoriums by Fannie Mae and Freddie Mac on March 31st. As such, Ahwatukee may see an additional volume of foreclosed properties that could increase inventory and depress values further.
Summary
In summary, Ahwatukee real estate continues to show strengthening as buyer demand intensifies. This improvement is resulting in the decline in inventory and higher Ahwatukee home sales. The potential impact from future foreclosures remains an area to watch in the Ahwatukee real estate market over the coming months.
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