The Phoenix Real Estate Market has some good news and some bad news.
The good news for for both home buyers and home sellers: home sales to owner occupants are up 6% from one year ago. This means more people are comfortable with the state of the housing market and are making a commitment to purchase a home.
The bad news is for home sellers: overall sales remain at a six-year low, due mostly to a 36% decrease in investor sales. I know, some of you are thinking "less investors sales" are better for home values in the Phoenix real estate market. While that's true it also means sellers have to compete for buyers. More on that below under the heading "Investors in the Phoenix Real Estate Market."
New listings in the Phoenix real estate market have remained low. In September 2014 there were 10% less new listings than last year and 8% less than 2012. Weakness in demand (less home sales) is a contributing factor to the small increase we had in Phoenix MLS listings.
October 2014 began with 23,519 active listings in the Phoenix real estate market, or just a few hundred more than September. The red line imposed on the below graph indicates the normal level of active listings, which is about 26,000 homes for sale, in the Phoenix MLS.
The below chart indicates 6,282 homes sales for September 2014 in the Phoenix real estate market. Sales historically decline as we approach the end of the year, so it's not unusual for September's home sales to be less than August's home sales.
We superimposed the red line on the chart below which indicates an average of 6,282 home sales per month for all of 2014. This is the lowest level since 2008.
The below chart shows "foreclosure-type" sales over the last eight Septembers. By foreclosure-type sales we mean bank owned homes (REO's) and short sales. Phoenix foreclosures have returned to normal levels and that's where they appear ready to stay. There are no increases in the number of Notices of Default (NOD's). As seen in the below chart, 2009 and 2011 had the most foreclosure-type sales ...
Read the rest of the story here: Phoenix Housing Market