2011 Ends On A Strong Note

Happy New Year!  As the calendar resets itself for another exciting 12 months, I expect this year to be one of the first where we see positive signs of recovery and hope in the real estate market.  Maybe I'm just an eternal optimist but I believe that I can see the light at the end of the tunnel...especially when new homes are becoming an attractive and affordable option for some home buyers out there.

Sales in December 2011 ended up from the month prior with a total of 7,826 homes sold, according to data from the Arizona Regional Multiple Listing Service.  This represents an eight percent increase over November 2011 though it is signicantly lower than this time last year with over 8200 homes sold in December 2010.

The median price of a home inched higher, though not unexpected, to $116,500.  The median price climbed 1.2 percent higher than the $115,000 seen in November and continues the trend of price increases that we have seen since late summer.  The median price is over $6,000 higher than this time last year (at $110,200).  

Resales continued to dominate the resale market in December, representing again almost 40 percent of the sales for the month.  Short sales still outpaced foreclosures and represented 33 percent of the home sales while the number of foreclosures continued to decrease to only 27 percent of the total sales for December.

One metric that remains the same from last month is the contract ratio...the percentage above or below the asking price that a home sells for.  In December, the average home sold for 96.5 percent of the asking price; this is the same number as November 2011.

The current inventory of homes has dipped below 19,000 while the number of pending home sales dropped to just above 15,000 homes.  I expect both numbers to increase in the next week or so as sellers shake off the holiday doldrums and list their homes for sale.

With inventory levels at very thin levels, I expect the competition of homes to be fierce as the quantity of quality, move-in ready homes remains low.  I have already started talking to my clients on how to structure their deals to take advantage of some of the rehab loans without having to come out of pocket for the repairs.  There are so many homes that the average buyer turns down that can easily be picked up for a great price without spending the thousands of dollars out of pocket to fix them up.

If you would like to talk about your options or if you would like to go view a home for sale, give me a call at 480-888-1234.