Phoenix Real Estate Market Recovers Quicker than Anticipated
You have heard it before - all Real Estate is local. But those words could not ring more true than in this current market, where the national news is always reporting on the slow and falling real estate economy - like it is just one big market. The reality is, there are literally thousands of real estate markets in the U.S.
Phoenix, AZ is finally getting some much needed attention on a national level as the news of our recovering market has hit the newstands. Being in the trenches everyday, we saw this happening 6 months ago. Our inventory is so low that it isn't even funny. Our inventory is currently down to the same level it was 13 years ago and our sales are are the same as they were in the boom years of 2005-2006! When the supply is that low and the demand that high it creates one thing and one thing only and that is - appreciation.
Mike Orr (Cromford Report) has a series of Daily Observations going called "Dude, Where's My Inventory?" where he contrasts the market's peak in inventory compared to now, showing the percentage difference of homes on the market from now vs. then. In his June 6th entry he compares the amount of inventory by zip codes in Scottsdale & the NE Valley. It is shocking to see how far the inventory is down. One of the major components that is driving the real estate market up in Phoenix is the lack of inventory and the high demand for these discounted homes.
For intance in zip code 85251 (Old Town Scottdale) April 2008 there were 155 homes on the market - today there are 33 homes on the market - that is a 79% drop in inventory, and that is just one case. In the SE Valley the inventory is down anywhere from 75% to 94%. It's shocking and proves to be a true indicator that this market that has turned the corner.
Zillow has forecasted that home values in Phoenix will rise 6.5% in a 1 year period - between March 2012 and March 2013, (which (by the way) is the highest ranking they gave anyone in their forecasts. But WOW! - it is looks as if Zillow greatly underestimated the come-back of the Phoenix market.
A good sign that the market is starting to turn will be when the average number of days on market starts to fall. So if the average days on the market starts to fall in a given area it is a very good sign that the local Real Estate market for that town is improving. We at Russ Lyon Sotheby's work hard to stay of the current market and provide real time statistics as they develop. If you have any questions you would like to have answered by a true real estate professional contact us at: 1-888-418-0106