Phoenix Market Update - February 2011
Well there is some good news that has showed up from analyzing the Feb 2011 housing sales numbers. Overall inventory of listings is heading downwards, Overall number of sales is higher and distressed sales has also slipped a little. Is the housing market showing signs of strengthening? I think it is a little too premature to say for sure if this is a blip in the statistics or the beginning of an overall strengthening trend. We’ll have to see how the next few months play out. Based on my own feel of the market, I think we are a bit early on market strengthening but there is no way to gauge these trends accurately - it’s only after the fact that you can identify when the true bottom or top of the market was. I have been on record in stating that we are swimming around market bottom right now and that only towards the later part of this year will we see signs of market strength pulling us very slowly out of that bottom. Who knows? Maybe we’re a bit early.
In any event, there is certainly many ways to look at the real estate market but the most important thing to remember is to get in at or near the bottom, which is where we are. Don’t procrastinate or wait it out only to miss the mark and then find it difficult to buy a home because inventory levels are shrinking and competition is increasing - the first signs of a market recovery. If the statistics from Feb duplicate themselves for another 2-3 months, we might be able to say that the market is moving in the right direction which makes it much more difficult to get in and snag good deals so don’t hesitate! Get in the game before it’s too late!
As for the specifics of the February statistics:
Total active listings dropped 2231 units from Jan to Feb
Sales are up to 7725 for the last month
We currently sit at a 5.2 month supply of homes for sale in The Valley - slightly above what would be considered a normal, balanced market.
Distressed Sales Stats: Short Sales represent 21% of the closings and 38% of the listings for a 9.8 month supply. The total for distressed properties is 66% of sales for the last month which is down 5% from the month prior
Feb of 2011 closings were 6535 vs. 2010 6158 which equates to a 6% increase over last year. And remember, last year, sales were fueled by the homebuyer’s tax credit which artificially inflated sales numbers until April.
The strongest market segment in the Valley continues to the the SW Valley with under a 5 month supply of homes for sale. I believe this is being driven by affordability and quality (newer homes for low prices).
Stay tuned to my blog. My next one will be why I am heading a shift from condos and town homes to single family homes for my real estate investor clients. It is an import shift that will potentially make you more money with less hassles down the road. Look for it within the next week and keep up to date with Phoenix market goings-on at www.CanadiansBuyArizona.com.
Cheers!
