{"id":313,"date":"2013-05-22T04:30:46","date_gmt":"2013-05-21T23:30:46","guid":{"rendered":"http:\/\/www.allphoenixareahomes.com\/?p=313"},"modified":"2013-10-26T03:58:30","modified_gmt":"2013-10-25T22:58:30","slug":"yes-virginia-the-market-is-up","status":"publish","type":"post","link":"https:\/\/nohasslelistingblog.com\/?p=313","title":{"rendered":"Yes, Virginia. The Market is UP!"},"content":{"rendered":"

As 2013 approaches the halfway mark, the local market trends continue to strengthen their path.\u00c2\u00a0 As agents, we \"\"<\/a>continue to be amazed at what a strong real estate recovery is underway in the valley.\u00c2\u00a0 But, as always, there is what the market is doing and then what people think the market is doing.\u00c2\u00a0 Public sentiment remains mixed despite the (to us) obvious recovery.\u00c2\u00a0 So perhaps human reaction is ultimately more interesting than any real estate market will ever be!\u00c2\u00a0 Nonetheless, let\u00e2\u20ac\u2122s look again at the numbers comparing now with the same time last year.<\/p>\n

Active Listings: 20,670 versus 21,841 last year – down 5.4%.<\/p>\n

Pending Listings: 10,658 versus 11,964 last year – down 10.9%.<\/p>\n

Monthly Sales: 8,162 versus 8,187 last year – down 7.4%.<\/p>\n

Monthly Average Sales Price per Sq. Ft.: $113.10 versus $93.57 last year – up 21%.<\/p>\n

Monthly Median Sales Price: $167,000 versus $130,000 last year – up 28.5%.<\/strong><\/p>\n

What does this mean?\u00c2\u00a0 New listings to the market, are down.\u00c2\u00a0 Sales are down from last year, but this is directly connected to the constricted supply rather than low demand.\u00c2\u00a0 There are simply more buyers than there are homes for sale.\u00c2\u00a0 This connects to the rising prices which are heading up again due to the unsatisfied demand (although not at the same pace of last spring).<\/p>\n

Of great interest is the mix of what is selling.\u00c2\u00a0 While single family sales are down as are condo\/townhome sales, in contrast mobile home sales are up 7%.\u00c2\u00a0 Why?\u00c2\u00a0 Mainly because the mobile homes new to the market are up 17% over last year\u00e2\u20ac\u2122s first quarter.\u00c2\u00a0 This demonstrates the effect supply has on sales.<\/p>\n

Distressed supply continues to disappear. The number of active REO (Bank Owned) listings across Greater Phoenix is down 18% in just the last month and is now down 93% from the peak in January 2009. Short sales are down 12% in the last month and are also down 93% from their peak in May 2010.\u00c2\u00a0 In fact, normal sales are back around a 73% market share (the highest amount since February 2008) and short sales at 16% and REOs at 11% (their lowest share since December 2007).<\/p>\n

All of these statistics should tell you one thing, this IS the recovery.\u00c2\u00a0 In fact the market is healthy and what is left of the \u00e2\u20ac\u0153distressed market\u00e2\u20ac\u009d is so small as to be nearly irrelevant.\u00c2\u00a0 With that said, Hart Research Associates did a survey of 1433 interviewees during February and March of this year.\u00c2\u00a0 They were asked:<\/p>\n

\u00e2\u20ac\u0153Thinking now about the housing crisis that started in 2008 when many people and families defaulted on their mortgages and lost their homes, do you think the housing crisis is pretty much over, that we are still in the middle of it, or that the worst is yet to come in terms of the housing crisis?\u00e2\u20ac\u009d <\/em><\/p>\n