Arizona Real Estate Market Summary

Market Summary beginning of September-

Introduction: Home sales in July were 4.9% lower than June, with a 4.6% fall in single family and a 7.5% fall in townhouse & condo sales.

Total sales were down 18% from July 2013 with single family down 18.7% and townhouse & condo sales down 13.3%. The gap between 2013 and 2014 sales closed open wider than in June because July was an unusually strong month last year. Thanks to the price rises between July 2013 and July 2014, the drop in total dollars spent on homes was less severe than the drop in the unit count.

Demand: Demand has been much weaker since July 2013 and as yet shows little sign of recovery. Activity by first time buyers has been stubbornly and unusually low and is not compensating for the loss in strong investor demand that had prevailed from 2009 until July last year.

At the top end of the market sales of single family homes over $500,000 was flat compared with July 2013. Although flat this was much better than steep drop for price ranges below $500,000. Sales of SFH below $150,000 fell 36%. This fall was partly caused by the lack of distressed supply, but mostly by the reduction in demand from investors.

Supply: the number of active single family listings without an existing contract was 18,184 for the greater Phoenix area as of August 1st. This is down 2.5% since July 1. The inventory of single family homes under $150,000 increased 56 days, which is exactly double the 28 days we we saw a year ago. Overall we have seen 3% more new listings created this year. Although buyers now have more homes to choose from and less competition from other buyers than in 2013, supply has been on a downward trend since peaking in mid March.

*GOD Speed*
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http://www.tomurazrealtor.com

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