Phoenix Real Estate demand for listings is up…demand is not the problem in Metropolitan Phoenix, as homes attractively priced are selling quickly as demonstrated by an average of 66 days on the market before Sold. Our issue is low supply and the imbalance between the two is clearly reflected by continued price appreciation. The monthly median sales price rose 2.9% from $175,000 to $180,000. The year-over-year increase in the median sales price for all ARMLS Phoenix sold listings showed a dramatic 27.7% increase. The median sales price is $39,000 higher than last year at this time, up from $141,000. WOW!

The average sales price for June was $236,954 which is down from $237,000 in May. The modest decline in the average price in June is not indicative of softening prices, but instead is reflective of fewer sales on the high end. With the current shortage of supply, 19,511 listings in total, upward pricing pressure will continue for Phoenix Real Estate.

ARMLS is currently showing 15,725 Active lisgins and 3,786 UCB listings, 30,000 total active listings is considered typical. UCB listings are down 45% to 3,186 from 6,859 this time last year, which is a significant change. UCB listings are comprised almost entirely of Phoenix Short Sales. Pair dwindling short sale numbers with active notices declining 55% year-over-year(17,910 to 8,027) and we have a rapidly declining distressed inventory market in the valley. While distressed sales still account for 21.5% of our total sales, one year ago they accounted for 46.8%. ARMLS defines distressed sales as a combination of short sale, preforeclosure and REO properties. If we look at the median price by category in June, the median price for a normal sale was $210,000 and the distressed median was $142,000.

As the level of distress continues to decline in Phoenix, prices will gravitate to the higher price point. New inventory in June was at 9,246 compared to 9,271 a year ago. With the current shortage of supply, and no significant changes coming with new inventory, upward pricing appreciation is inevitable. The Pending Price Index projects an increase in July in both the average and median sales prices.
Phoenix Real Estate Investors who are willing to get their hands dirty with fix up properties are doing well in a market like this. There are still distressed homes available for purchase and with some cosmetic repairs investors can really capitalize. The fact that the rates are staying low is also a good indication that buyers will be out there looking to get into their new home before the kids go back to school in August/September.

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