Market Update Through September 8, 2013

Inventory (All Areas & Types in MLS): Total active listings (without AWCs/U,CBs) have increased by 1854 units in the last month. As of September 8th, we sit at 18,746 Actives for All Property Types. Sales are at 6885 for the last 30 days (as of September 8th), down by 1348 units from one month ago! Pending Sales are down from the month before – as of September 8t, there are 7,443 Pending vs. 9,047 Pending one month ago. We are currently sitting at a 2.7 months of supply (based on Active without AWC/UCB). Traditionally, 3-4 months of supply indicate a balanced market. Now is the time to take listings!

Absorption Rate: Absorption Rate is the percentage of Inventory that is sold each  month. A higher percentage means that inventory is moving at a fast rate and indicates a Seller’s Market. Specific areas of the valley have very high absorption rates, for example:

East Valley: 40%
Peoria/Glendale: 45%
Desert Ridge: 45%
Sales: In August 2013, there were 7965 Re-Sales and New Sales in Maricopa County, compared to July 2013, when there were 8744. In August 2012, there ewre 8755. That equates to a 9% decrease month-over-month and a 9% decrease year-over-year!

Prices: The Median Price for Maricopa County in August 2013 was $195,000; in July 2013 it was $198,000. This marks a 2.5% decrease! In August 2012, the Median Price was $155,000 – so we re currently at a 25% increase year-over-year! Looking back at past years Median Sales Prices: August 2007: $253,000 – but in August 2001: $140,000.

Distressed Market Pie Chart: This chart shows you the percentage of distressed properties  that are being listed and sold. Short Sales represent 10% of the Closings for the last month for a .8 Months of Supply. Distressed Sales (Short Sales and REOs combined) accounted for 19% of the total sales for the last month. REO Sales represent 9% of the sales from last month. Normal, non-distressed sales are now 81% of the market! That is the highest it has been in 5 years!

Luxury: The Luxury Market of $1,000,000+ continues to have lowest absorption rate of any market segment, and this month, we have seen a slight dip in this market segment compared to the previous month. There was 8% absorption rate for the month of August. There were 81 properties in the MLS that were sold for more than $1,000,000 in August 2013.

Months of Supply (includes AWCs, Single-Family only)

East Valley: 2.5

Northwest Valley: 2.7

Paradise Valley: 6.1

Luxury ($1 mil+): 12.3

Southwest: 2.2

Peoria/Glendale: 2.2

Camelback Corridor: 3.4

Cave Creek: 4.1

Ahwatukee: 2.9

Scottsdale: 4.4

Apache Junction: 3.6

Fountain Hills: 5.2

Buckeye: 3.1

Desert Ridge & Tatum Corridor: 2.2