Arizona Year End Market Report

What really happened to the housing market this year? 

Well let’s look at the stats.August 2011 saw the lowest price/SF and from that point on we have seen some terrific gains and movement in the marketplace. This is shown by the chart on the right. Here we can see significant and steady increases in sales prices, a whopping  28% increase in price/SF!  This means more homeowners are above-water, making way for more traditional sales. More homeowners can now qualify for new loans, with the 3 year waiting period after a short sale expiring, for those who did a short sale back in 2008 and 2009.

In December 2010 there were approximately 45,000 Active homes for sale, which translates into about a 6-8 mos supply. A more “normal” market will have about a 3-5 mos supply. The end of 2011 was our first year since the downturn in the market that we showed an appreciation in the monthly price/SF.  In 2011 the number of active listings dropped drastically to about 26,000, a 3.8 mos supply of inventory.  Short sales and foreclosures made up a much smaller percentage of active listings as the distressed property inventory was swallowed up by investors, hastening the return to a more balanced market.

August 2011 saw the lowest price/SF and from that point on we have seen some terrific gains and movement in the marketplace. Since then we have seen a 28% increase in price/SF which means more homeowners are above-water, making way for more traditional sales. More homeowners can now qualify for new loans, with the 3 year waiting period after a short sale expiring, for those who did a short sale back in 2008 and 2009.

2012 shows that inventory has been slowly increased but our month’s supply has still been steady at around 3 mos.  That is great news! It means that the market is balanced with a strong number of qualified buyers ready to jump into being a homeowner, again or for the 1st time.  This change in our market also makes way for the move-up buyer who can now sell their home and purchase something else…2-3 years ago those distressed sellers were forced into rentals, depleting the market of buyers, which caused inventory to grow.

With modest appreciation, growing inventory and a strong supply of buyers, 2013 looks to be poised for a great year in the Real Estate market.  ** Each city has their own specific rates of recovery based upon how hard those areas were hit by the distressed housing market.  Call me for more detailed market reports in your area.

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