The Arizona market is making national news. Our price increases over the last year are astonishing and also have critics cautious not wanting a repeat of our bubble 6 years ago. Our inventory is extremely low which is causing huge price increases and bidding wars in order to get a house. Builders have started building at full speed and can’t keep up with demand. Here are a few statistics from 2012.
- The Valleywide Month’s Supply in January rose to 3.82 from 2.98 in December, but still remained a solid Seller’s market. Anything under 4 months is considered a SELLER’S MARKET!
- Single Family home prices rose. The Median Sales Price is up 33.9% from December 2011. It went from $122,500 to $164,000.
- Single Family Home Sales increased year over year as well. New Home Sales are up 30% and Re-Sales are up 65%
- Distressed properties (foreclosures and short sales) are down. Investor Flips are down 20%, Short Sales are down 36% and bank owned homes are down 55%. This is good and bad news. Good News is the majority of the homes on the market are “normal” sales which help with price increases, the bad news is we have such low inventory without the distressed properties. We still don’t have enough normal sellers who can sell with equity. A big number of homeowners are still under water in Arizona.
- Third Party purchases such as auctions are down 51%.
- Investor purchases still remain high at 32.4%.
The information is provided from The Cromford Report and data from ARMLS.
A great article to read about our market is on azcentral. Click on the Link to read the full article.
