In the Greater Phoenix market active listings including AWC as of July 30th were: 6.4% REO, 37.7% short sales & pre-foreclosures and 55.9% normal. Last year at this point we had 14.3% REO, 41.5% short sales and pre-foreclosures and 44.2% normal.
There has been a fall in the average $/SF for listings under contract since peaking around the end of April. Some areas have still been heading upwards, for example: Avondale, Buckeye, Chandler, El Mirage, Gilbert, Glendale, Goodyear, Laveen, Maricopa, Mesa, Queen Creek and Tolleson. The mix of homes under contract has changed in favor of smaller homes, with pending listings averaging 1,969 sq. ft. having been 2,002 on April 28. AWC listings have fallen from an average of 2,018 to 1,977 over the same period. The annual appreciation rate for $/SF across all areas & types exceeded 25% today. This is not because prices are rising at the moment, but because prices were falling this time last year.
New listings are still being added to ARMLS at a lower rate than last year. Today the 30-day total is 5.7% lower than July 26, 2011 which was 18.4% lower than July 26, 2010. Despite these declines inventory is starting to increase because of the lower sales rate. We do expect inventory to increase in the 4th quarter.
Two years ago, single family homes represented 55% of the rental listings on ARMLS. Today this has increased to 68%.
New build homes are selling so fast that almost no builder specs remain and current build time is 7 months. This has become a go to area for investors to the point some builders will not sell to investors unless they agree to occupy the property for at least 1 year.
Land sales have been very strong with builders and investors buying every available large parcel especially along the 303 corridor in the Peoria area. This area includes the Master Planned development of Vistancia. The build out of Loop 303 is the key to unlocking the west valleys growth.
We hope you’re all enjoying the lazy- hazy days of summer.
Joe & Lorrie