According to the latest Arizona State University report released in early October, the Phoenix housing market is growing out of a housing market shortage.
“Although demand still exceeds supply, they are fast moving toward each other. If the current pace of change continues, they are likely to be in balance before the end of the year.” Michael Orr, the report’s author and real estate expert at ASU’s W. P. Carey School of Business, stated in the report. “The seller is no longer holding all the cards in the Greater Phoenix housing market, and if their offers are countered aggressively, some potential buyers may walk away because they now have more alternatives.”
Increasing in pricing for real estate in Phoenix
The report includes revealing new housing data indicating that although single family home prices were little changed between July and August 2013, the pricing levels are dramatically higher when compared with August 2012 pricing. The median sales price is up 28% from $150,000 to $192,000. Sales in all real estate sectors (new homes, preforeclosures, bank sales, HUD
sales) are dramatically up since the low point in September 2011 in the Phoenix metropolitan area. For single family homes, the average price per square foot is up 22% from $96.60 to $118.00.
“We believe that average price per sq. ft. gives the most useful guide to price changes in the market.” States Orr. “HUD sales and
trustee sales to third parties are showing the largest percentage increases over the year, but they remain the cheapest sources based on average $ per sq. ft., median sales price and average sales price.”
Foreclosures significantly lower
Foreclosure starts for single family and condo/townhouse homes fell another 5% between July and August 2013, taking them down a dramatic 61% below August 2012 levels.
The report notes : “Foreclosures used to provide a significant supply of homes for those willing to bid at the trustee auction, but the number of homes auctioned has dropped significantly. During August 2013, there were 350 single family homes purchased by third parties at trustee sales, 305 in Maricopa and 45 in Pinal. Competition for auctioned homes is intense. Average price per sq. ft. has increased 22% from $72.14 to $88.08 per sq. ft. over the last 12 months. They now represent 4% of the market, down from 12% in August 2012.
The ASU housing report concludes: “We have been through enormous turbulence since 2002 and it will be a relief for many to be operating in a normal, healthy and balanced market. We are not there yet, but the direction is now clear and the pace of change is swift.”
Article written by staff person at Fort Lowell Realty & Property Management, property management phoenix.