Weekly Maricopa Arizona Housing Market Update
I just got back from an 11 day cruise in the Caribbean. Needless to say, it was an excellent and much needed vacation. Unfortunately, the high cost and slow speed of the internet on the ship kept me from blogging on a regular basis. I missed a couple of these updates but here is the latest news.
ACTIVE: The number of subdivision homes for sale in Maricopa Arizona decreased to 906, the lowest level since early SEP. I attribute this to a combination of continued buying strength coupled with a slowdown in the number of new listings in the short sale and foreclosure categories. That being said, there is still around a 6 month inventory and valyes continue to decline.
SHORT SALES: 419, a 6% decline from my last post three weeks ago. This is most likely due to the upcoming Holiday period and homeowners deferring until after the first of the year to list their home. In fact, I have suspended all marketing efforts for these listings until then. I feel that, since most of these properties are occupied, homeowners would prefer not to upset their Holiday “routine”.
FORECLOSURES: 226, a 10% decline from three weeks ago. The effects of the foreclosure moratorium imposed by many of the major lenders as they investigate robosign issues is still having an effect. In addition, many lenders are also beginning their Holiday moratorium earlier this year. I had a couple of extensions granted on homes that did not even have an offer on them and cannot recall the last time this has happened.
AWC: 259. The number of short sales receiving accepted offers remains consistent. I find this a bit unusual in that there are so many foreclosures for buyers to choose from. Most likely this is due to the fact that most agents are being forced to lower their prices well below market value in order to solicit an offer. Whether or not the lenders will accept these aoofers in another matter entirely. If they begin to do so, values will continue their decline for the short term.
PENDING: 259. This number has also remained relatively consistent for the past 30 days. Of course, this is to be expected as the “migration” of seasonal buyers” (snowbirds) to Maricopa Arizona continues to increase. This should peak shortly after the first of the year with a huge influx expected shotly after the Holidays.
CLOSED: 49. This is a very strong number but is most likely due to the “end of the month” surge we usually see.
NOV CLOSED: 177. This is also a strong number but quite a bit below the mid 200 level we routinely observed in 2009.
In summary, the market continues to track along expected lines (at least those expected by myself). I expect the number of new listings to take a dramatic increase after the first of the year when a surge of short sale listings will most likely occur. In addition, at some point in time the lenders will need to start releasing their built up inventory. If the influx of new buyers (most snowbirds) happens as it historically does, the inventory should remain relatively flat if not increase a bit.
As always, I will be watching closely.
