Phoenix Housing Market Update-July 2010

The latest housing  numbers for the Phoenix area were just released and although there are mixed signals the market does continue to settle. It remains somewhat difficult to determine the effect of homebuyer tax credits and loan modification programs. New home sales have dropped slightly but the median home price has gone up a little. While the recent number of foreclosures climbed slightly the number of foreclosures sold by lenders didn’t. According to Information Market there were 4,900 foreclosures last month which is about a 20% increase. In the “next breath” the number of pre-foreclosures fell 5% to 6,170. The overall pending foreclosures for the Phoenix metropolitan area fell to 42,324 which is a 6% drop. After a small increase earlier this year new home builds have slowed a bit. For the month of May there were 570 new single family home permits issued for the Phoenix area which is down from the 604 that were issued in April. On the bright side new home builds are up over 50% compared to 2009! There were a little over 800 new home sales in May which was about the same number we saw for April. We probably saw a fairly good sized boost in new home sales because of the homebuyer tax credit and the new home market could continue to slow some. The median single family detached home price for May was $130,000 which was an increase of approximately $2,500 compared to April. According to ARMLS projections we will see a small decrease in median price for the next couple of months and then start climbing again in September. Foreclosure homes accounted for almost 40% of all sales in May which is a good sign for our market, last year at this time foreclosures accounted for over 60% of all sales. There is still talk of “shadow inventory” held by some banks with the possibility of these being dumped on the market to quickly which could put pressure on holding prices. If we can be of any assistance in helping you with your Phoenix real estate investing goals please don’t hesitate to contact us today!

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