Phoenix Real Estate Market Update - The Buyers Are Out There
The Phoenix real estate market continues to show improvement in Buyer demand as the number of properties currently under contract breaks through 7,500! This result has now intersected the high for all of last year. This level is also higher than the initial curve for 2006 before the market slowed down considerably. This is what we had hoped to see—that 2009 start with a stronger buyer demand curve based on the number of “Pending” properties. Inventory is stable at 52,000 properties.
Most people may not be aware but 2008 showed marked improvement over 2007 in terms of closed transactions, with 59,400 properties versus 54,237 properties. The heavy volume of foreclosures on the market has worked to reduce pricing and drive increased interest in the market.
Meanwhile, the median price for homes (daily est.) has continued to drop and sits now around $134,000. The average sales price has declined to $242,000. Looked at another way, strong buyer activity in the lowest price ranges of the market and overall pricing declines have pushed both figures downward.
Going forward, more foreclosures are slated to come. Though we can’t ignore more other challenges in our market and the broader economy, the changes in the our local market are positive. If this is any predictor, 2009 is off to a good start.
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