Great news in the Phoenix Real Estate market this week!

Just when I thought that interest rates couldn’t possibly go any lower, they prove me wrong!  With amazingly low interest rates, home buyers have an incredible opportunity.  Low interest rates create an opportunity for buyers to purchase more home for the same amount of money! In recent weeks, the real estate market in Phoenix has had a slight swell in the number of  phoenix homes for sale, so there is certainly inventory to choose from.

Sales for the past twelve months have outpaced sales for the same twelve month period last year by 9% and by 42% for the twelve month period prior to that.

As we have observed for the past 18 months, the level of distress is directly related to the pace of absorption of inventory.  Distress means distressed properties or homes that are being sold as short sales or foreclosures. The higher the level of distress indicates a higher absorption.  What does this mean?  Basically, in cities where there is more distress, there are more homes being sold.  Below is the level of distress and absorption by city.

Anthem – distress 68% / absorption 23%

Cave Creek – distress 45%/ absorption 17%

Chandler – distress 62%/ absorption 20.6%

Fountain Hills – distress 34%/ absorption 12.7%

Gilbert – distress 69% / absorption 21%

Glendale – distress 74% / absorption 25%

Mesa – distress 63% / absorption 20%

Paradise Valley – distress 20% / absorption 11%

Peoria – distress 67% / absorption 22%

Phoenix – distress 65% / absorption 21%

Scottsdale – distress 35% / absorption 14%

Tempe – distress 49% / absorption 18%

Current Conditions in the Phoenix Market:

*    There are 31,510 single family detached listings currently active in MLS.  Albeit this is a slight decrease, but I’m enthusiastic about seeing a decrease after many, many weeks of slight increases, of 85 listings from last week.

*        There are 38,864 total listings currently active in MLS, including condos, town homes, patio homes and lofts.

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